Oil prices on the rise again

This is despite the fact that the world is moving into a deflationary depression and oil prices should be falling

Oil prices rise after new US sanctions against Iran

Global oil prices have increased once again one day after the United States imposed new economic sanctions against Iran's energy sector.

Press TV,

1 August, 2012

On Wednesday, Brent North Sea crude for delivery in September rose by more than a dollar to $106.12 a barrel.

New York's main contract, light sweet crude for September, gained 80 cents to settle at $88.23.

On Tuesday, US lawmakers agreed on a compromise bill to pass fresh sanctions against the Islamic Republic.

US President Barack Obama said the existing sanctions on Iran's oil industry were expanded "by making sanctionable the purchase or acquisition of Iranian petrochemical products.”

He added that the new measures would be taken against firms that have dealings with the National Iranian Oil Company (NIOC), the Naftiran Intertrade Company (NICO) or the Central Bank of Iran (CBI).

The US president said that the sanctions will apply to any financial institution that allows Iran to access the international financial system.

At the beginning of 2012, the US and the EU approved new sanctions against Iran's oil and financial sectors. The embargoes aim to prevent other countries from purchasing Iranian oil or transacting with the CBI.

Washington and the EU have declared that the bans are meant to force Iran to abandon its nuclear energy program, which they claim may include a non-civilian aspect.

Iran, however, has vehemently refuted the allegation, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty and a member of the International Atomic Energy Agency, it is entitled to utilize nuclear technology for peaceful objectives.

A different spin from the US media – perhaps Iran doesn't exist?

Oil prices climb before Fed rate decision

Global oil prices advanced on Wednesday in cautious deals as traders awaited the latest US Federal Reserve policy decision and digested signs of strong demand from top consumer the United States.

Business Inquirer,

2 August, 2012

Brent North Sea crude for delivery in September gained $1.20 to $106.12 a barrel in late afternoon deals in London.

New York’s main contract, light sweet crude for September, added 80 cents to $88.23.

Prices earlier hit two-week lows on fading hopes for additional stimulus measures from the Federal Reserve and European Central Bank, analysts said.

However, the oil market rebounded on signs of solid demand in the United States.

“All eyes are focused on the US Federal Reserve, although expectations for a decisive move to stimulate the economy appear to be waning,” said analysts at the Vienna-based JBC Energy consultancy in a research note to clients.

The two-day Fed meeting concludes Wednesday, followed by an ECB meeting on Thursday.

The Federal Reserve’s top policy makers were expected to shy away from launching new stimulus measures for the faltering US economy, with an announcement due at about 1815 GMT.

Ahead of the Fed announcement, the US government said that American crude stockpiles fell 6.5 million barrels in the week ending July 27.

That was much more than market expectations for a drop of 800,000 barrels, according to analysts polled by Dow Jones Newswires, and indicated strong demand.

“Oil prices moved up higher, off their two-week lows as US commercial crude inventories showed a decrease 6.5 million barrels,” said Sucden analyst Brenda Kelly.

“In the absence of any (monetary policy) easing, the slowdown in China and Europe could keep prices fairly subdued in the near term,” Kelly added.