Oil prices up on Iran fears, trouble in Iraq, and Libya's output recovers

摘要

Crude oil prices rose to a ten-month high in response to reports that Iran was proposing to cut oil exports to the EU in advance of the EU's embargo on Iranian oil imports that is due to begin on July 1. Brent crude broke through $125/bbl, representing a rise of over 11% since the start of February. In the event, Iran confined itself to an announcement that it was halting oil sales to British and French companies, involving sales of only 100,000 bpd. Refiners in Japan and China were reported to be reducing their purchases of crude from Iran, and buyers across Asia reported problems obtaining protection and indemnity insurance for vessels calling at Iranian ports. Refiners in India were obliged to pay for Iranian crude in rupees because of tough US sanctions on US banks making dollars available for trade with Iran. The UAE announced a six-month delay to the opening of a 1.5 mn bpd pipeline designed to by-pass the Strait of Hormuz. The line is not expected to be commissioned before November 2012.