Iranian Average Crude Oil Price Reach $120 a Barrel

On the 22nd of February, the average crude oil price for oil in Iran reached $120 a barrel, according to a report of the IRNA news agency.

In the markets within Asia, Iran’s light crude closed at an oil price per barrel of $122.17. Similarly, in the Mediterranean region, heavy-grade crude oil from Iran was traded at an oil price per barrel that ranged from $116.72 to $120.65.

Brent crude prices in the ICE futures exchange grew by 1.5% or $1.85 to reach a per barrel cost of $125.47. That amount was its peak attainment in a ten-month period said the Wall Street Journal.

In the past weeks, the tension between the Western nations and Iran has been at the top of oil traders’ minds worldwide.  That caused worries that the increasing concern on the nuclear program of Tehran can result to an obstruction in oil exports as soon as Iran push through with its threat to block crude shipments that pass through the Strait of Hormuz.

The daily oil output of Iran amounts to 3.5 million barrels. As such, it is the top two biggest producer of oil in the OPEC or the Organization of Petroleum Exporting Countries.

Just recently, Iran made an announcement that it will reduce its oil exports to France and the United Kingdom. Even if none of the two nations primarily use oil from Iran, newly increased worries that Tehran may possibly stop exports in other countries way before the European Union begins with its planned embargo beginning the 1st of July this year.