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.
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.
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.
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