West Texas Intermediate crude for delivery in April rose 53 cents to USD 107.11 per barrel while Brent North Sea crude also for April gained 33 cents at USD 125.77 in afternoon trade on Thursday.
According to Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut, worries over supply disruption caused by Iran’s move to cut oil exports to certain EU states is the main factor for the hike in oil prices.
Global oil prices have continually climbed this year following Iran’s move to stop oil sales to British and French firms. Tehran also announced it may also halt oil exports to more European countries.
The decision by Iran came in response to the EU's oil sanctions against the country.
EU foreign ministers approved sanctions against Iran on January 23, including a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states and a ban on selling diamonds, gold, and other precious metals to Tehran.
The EU has placed oil sanctions against Iran in a bid to put pressure on Tehran over its nuclear energy program based on allegations that Iran is seeking to weaponize its nuclear technology.
Iran rejects allegations of pursuing military objectives in its nuclear energy program, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty and member of the International Atomic Energy Agency, it has the right to use nuclear technology for peaceful purposes.
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Oil prices in Asian trade have once again jumped following Iran’s move to halt oil exports to Britain and France in response to the European Union’s oil embargo on Tehran.
News ID 181577
