Posted on 08/30/2006 9:50:08 PM PDT by familyop
SINGAPORE, Aug 31 (Reuters) - Oil prices rose more than half a percent on Thursday as Iran looked set to defy the United Nations' deadline for halting nuclear enrichment, raising the risk of sanctions against the world's fourth-biggest exporter.
U.S. oil prices climbed 40 cents to $70.43 a barrel after bouncing from a 10-week low $68.65 a barrel on Wednesday, shaking off an unexpected rise in gasoline and crude stocks.
London Brent rose 52 cents to $70.70 a barrel.
Later on Thursday the U.N. nuclear watchdog is likely to report that Iran has not complied with a U.N. demand to suspend its atomic fuel work, which the West fears is meant for building a bomb but Tehran insists is only for generating power.
Iran has repeatedly said it will not give up its right for nuclear power, but indicated last week it could negotiate on the scope of the plans, reinforcing U.N. powers China and Russia's resistance to any immediate punitive measures.
Major powers will begin discussing an Iran sanctions resolution at a meeting in Europe next week if Tehran continues to defy the U.N., the U.S. State Department said on Wednesday, but even ally Britain has played down any quick measures.
"Initially, the diplomatic gridlock looks like it will generate little in the way of concrete actions. For the time being, prices will bounce around, but little else," said First Energy Capital analyst Martin King in a report.
Still, dealers are anxious of the potential repercussions.
If Iran did retaliate by cutting its own production or interrupting Middle East exports through the Gulf of Hormuz, which carries a fifth of the world's oil supplies, the implications could be long-lasting.
"The impact could be similar in scope to the way the Venezuelan strikes and Nigerian outages of 2003 were still impacting the crude oil market more than one year afterward," said King.
SLUMP FROM PEAKS
Oil prices have slumped $8 below their all-time high in July as the summer driving season winds down and after Israel and Hizbollah agreed to a truce. Prices are now only a hair higher than a year ago, when markets spiked on Hurricane Katrina.
Oil initially dipped on Wednesday after U.S. data showed weekly crude stocks rose by an unexpected 2.4 million barrels as imports surged to the second highest level on record.
Gasoline stocks also rose unexpectedly by 400,000 barrels but distillate stocks, including heating oil, increased by 1.3 million barrels, in line with expectations.
Nigerian oil unions decided on Wednesday to stage a "warning strike" on Sept. 13 lasting two or three days to protest a lack of security in the Niger Delta, a union leader said. Violence against foreign oil companies has cut the OPEC member's output by about a sixth, or around 500,000 bpd.
Warning strikes typically have no impact on oil output or shipments from the world's eighth-largest exporter, because key workers often remain at their posts or are replaced by non-union staff.
Oil back up at 70.50 with the rest of the NYMEX in the green (....ooops....Siver down a cent>>>>..)
Oh but, of course, just when gas prices were starting to go down! Any excuse to raise them up again!
Precisely. Didnt think they would let them go back down, did ya?
Notice that there is more than enough supply to go around.
The streets of tourist towns are full of cars with out-of-state tags. People continue to drive to avoid boredom when for no good reason. After we shut down Iran's mullahs and military forces and restart the rigs with a friendlier government there, the price of oil will go down. And we should consider our soldiers in Iraq more than our big, fat, couch-potato comforts.
'Clear evidence' Iran is arming, training Iraqi extremists: US general
http://www.freerepublic.com/focus/f-news/1688792/posts
Iran stokes Iraq unrest, U.S. says
http://www.freerepublic.com/focus/news/1682208/posts
General: Iran Behind Anti-US Iraq Attacks
http://www.freerepublic.com/focus/f-news/1654015/posts
US Commander Accuses Iran of Aiding Iraqi Shi'ite Insurgency
http://www.freerepublic.com/focus/f-news/1654142/posts
...likewise, and well said, moreh.
Let China take them over, it can't make them any worse.
At this point it not hard to see the price manipulation. Just look at some of the news stories coming out of the woodwork. Looking for any excuse to keep the price above $70.
Who exactly is "looking for any excuse to keep the price above $70"?
So, why didn't the UN make it Aug. 15, Aug. 1, Sept. 30,etc., etc.???
Why? Because the Iranian oil minister knew when Labor Day was coming and the oil producers are doing everything possible to keep the prices up.
Freakin idiots.
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