Concerns on Military Attack versus Iran Push Oil Prices to $91
Current oil prices rose to $91 per barrel on concerns that a possible military confrontation over Iran’s nuclear program may negatively impact the supplies of crude. Anticipations of fresh stimulus measures to strengthen the economy of China also boosted crude markets.
In the early afternoon, European time, the crude price per barrel for delivery in November was 94 cents higher at $90 on the NYMEX. During the previous trading day, the contract shed $1.39 per barrel to end at $89.98.
On London’s ICE Futures Exchange, the current oil price of Brent gained 97 cents to $111.01 a barrel.
Energy analyst Victor Shum of Singapore’s Purvin & Gertz consultancy said that harsh statements over the nuclear
program of Iran and Israel’s threats of military action brought back concerns about oil stocks in case an all-out conflict breaks out.
President Obama informed the UN General Assembly in the early parts of this week that he wants to fix the conflict peacefully but that the period to do so is limited. The president also said that the government of Iran was not able to show that its nuclear program is for peaceful aims.
Some of President Obama’s comments have led to several buying, leading the crude price per barrel to stay at about $90. The market increase began earlier in Asia, supported by expectations that the People’s Bank of China will take additional steps to boost the number 2 economy in the world, one that is currently slowing down. China is a huge energy consumer due to its manufacturing industry.
Elsewhere in the energy markets, the price of heating oil moved 1.15 cents higher to $3.114 a gallon. The cost of wholesale gasoline gained 3.11 cents to $2.9049 a gallon. And the price of natural gas increased 3.6 cents to $3.251 per thousand cubic feet.