Oil prices climb high for fear of Iranian sale halt

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With Iran announcing it would stop selling oil to Britain and France in retaliation against a planned European oil embargo, oil prices have climbed to a nine-month high. The Iranian Oil Minister has warned, the country could act pre-emptively, ahead of the EU ban that's due to take effect in July. All of this is stirring up increasing concern, that stunted supply will restrain global growth.

The European Union last month agreed to ban Iranian oil purchases as the West ratchets up pressure over Iran's nuclear program. As a result, Iran - the second-largest producer in OPEC after Saudi Arabia - said it's stopped exporting crude oil to French and British companies, and will instead "give its crude oil to new customers." This latest move is rattling already-concerned markets, pushing oil prices to their highest since May 2011.

The jump in the oil market comes after the UK price of diesel reached a record 143 pounds a litre last week. Crude oil futures ended up 2.5 percent this week at around 105 U.S. dollars, the highest price for the contract in nine months. London Brent crude also rose by 55 cents to around 120 U.S. dollars.

Analysts fear this could just be the beginning. They warn, mounting tension over Iran's nuclear program could trigger another jump in oil prices and lead to a disruption of global crude supplies - and a slowdown in global growth.

But for now, experts say oil prices are still below the levels that would represent a serious threat to Britain's economy. The main reason is that petroleum imports from Iran comprise less than one percent of total imports.

 

Editor:Bai Yang |Source: CNTV.CN


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