The Shadow
Oil rose to near $102 a barrel on Wednesday after Iran announced it would stop crude exports to six European countries and investors were heartened from positive developments in Europe’s sovereign debt crisis.
By early afternoon in Europe, benchmark crude was up $1.11 to $101.85 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 17 cents to finish at $100.74 per barrel in New York on Tuesday.
In London, Brent crude was up $1.76 at $119.11 per barrel on the ICE Futures exchange.
Iranian state TV said Wednesday that Tehran had cut oil exports to six European countries in response to sanctions from the European Union which include a boycott of new oil contracts with Iran.
Iran’s oil minister, Rostam Qassemi, said recently that Tehran could cut off oil exports to “hostile” European nations as tensions rise over the Islamic Republic’s nuclear program.
European sales account for about 18 percent of Iran’s total crude exports and its main buyers include Greece, Italy and Spain.
Adding to the tensions, antagonism between Israel and Iran has escalated following a bomb attack on an Israeli diplomatic target in India and a foiled attack in Georgia.
