Oil Price Hits 3.5-month High on Middle East Tensions

Aug. 20, 2012
Analysts at JBC Energy research group said "growing tensions in the Middle East and hints of new economic stimulus measures" were supporting prices.

World oil prices rose Monday, with New York crude reaching the highest level for three and a half months on tensions between Iran and Israel, and economic recovery hopes, analysts said.

New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in September reached as high as $96.53 a barrel -- the highest point since May 11.

It later stood at $96.15, up 14 cents compared with Friday's close.
Brent North Sea crude for delivery in October climbed 66 cents to $114.37 in London midday deals.

Analysts at JBC Energy research group said "growing tensions in the Middle East and hints of new economic stimulus measures" were supporting prices.

Israel's media is increasingly speaking about an imminent unilateral strike being prepared by the country against nuclear sites in major oil producer Iran.

Israel, like its close ally the United States, accuses Iran of seeking to develop an atomic arsenal.

Tehran denies this, and says its nuclear program is exclusively peaceful, while its military chiefs warn that they will destroy Israel if it attacks.

JBC Energy analysts on Monday added that New York oil prices may have won a boost from comments by the head of the International Energy Agency, Maria van der Hoeven, who on Friday ruled out the need to tap into U.S. oil reserves.

Commerzbank analyst Carsten Fritsch said oil prices were recouping some of the losses suffered on Friday.

"The fall in price had been triggered by U.S. plans to tap into strategic reserves," he added. Media reports have said the United States is considering the possibility of releasing extra oil supplies to help bring down crude prices, which it deems too high and thus a strain on economic recovery.

Analysts say such a move would give a boost to U.S. President Barack Obama in his quest to win re-election later this year.

Copyright Agence France-Presse, 2012

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!