Mar 06, 2012 12:30 PM IST | Source: PTI

Oil prices rise on Iran tensions

Oil prices rise on Iran tensions

Oil prices rise on Iran tensions
London, Mar 5 (AFP) World oil prices rose in volatile trading today, as worries over Iranian supplies helped to offset a cut to China's growth outlook and weak eurozone data, traders said. New York's main contract, light sweet crude for delivery in April, rose 16 cents to USD 106.86 a barrel. Brent North Sea crude for April climbed 59 cents to USD 124.24 in late London deals. "While slower economic growth in China and across Europe lowers demand expectations, there are still concerns over supply," said Fawad Razaqzada, an analyst for traders GFT Markets. "Sanctions are affecting the amount of Iranian crude that is coming to market and geopolitical tensions remain elevated." Western powers have imposed a raft of economic sanctions on Tehran in a bid to halt its controversial nuclear programme, which is believed to mask a drive to build weapons. Tehran denies the charge, and has warned that it could close the Strait of Hormuz -- a key transit route for global oil supplies -- if increased Western sanctions halt Iranian oil exports. The Islamic republic is the world's fifth largest oil exporter and the second biggest producer in the OPEC cartel. Oil prices had fallen earlier today after Chinese Premier Wen Jiabao said his country was targeting growth of 7.5 per cent in 2012, a third straight reduction for the world's number two economy. Elsewhere, a key survey showed that eurozone private sector activity fell back in February after returning to growth in January, underlining predictions of recession. (AFP)
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