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The prices on oil climbed in New York for the first time in four days after Venezuela announced that OPEC couldn’t interfere to offset sanctions against Iran. European leaders were planned to solve their debt crisis by their own strategies. After an official meeting on 10th of January 2012 between Germany’s chancellor and the International Monetary Fund’s Managing director in Berlin, Futures mounted so far as 0.9 percent. Venezuela’s oil minister Rafael Ramirez in Caracas commented that the Organisation of Petroleum Exporting Countries (OPEC) can’t get involved in a dispute between the United States and Iran over offset sanctions. Gavin Wendt, founder and senior resource analyst at Mine Life Pty in Sydney said: “The Iranian situation is really for speculators and traders to have a bit of fun.” When the issue will get solved, the oil price will descend by about $5 to $6. According to the New York Mercantile Exchange in electronic trading, the prices on crude for February delivery climbed $1.02 to $102.33 a barrel, which was at $102.30. The contract ascended 0.3 percent to $101.31, which is considered the lowest close since 30th of December 2011. Denoting the third annual increase, the prices on oil advanced 8.2 percent in 2011. According to the London-based ICE Futures Europe Exchange, Brent Oil for February delivery mounted 81 cents, or 0.7 percent, to $113.26 a barrel, while the European benchmark contract was at a $10.92 premium according to New York-traded West Texas Intermediate grade. However, the extension was a record $27.88 on 14th of October 2011. Because of the United States and European sanctions over the nuclear program, Iran threatened to block the Strait of Hormuz. This news influenced prices on oil that has gained 3.1 percent in New York. Dennis Ross, who has two years experience on the National Security Council as the United States President Barack Obama’s special assistant on Iran said: “Iran is unlikely to block the strait as it will suffer the most compared to others.” Nigeria, an OPEC member is the fifth-largest supplier of oil to the United States. On an average, it produces 2.2 million barrels crude a day. With above information, it is clear that the alteration in oil prices at one part of the World extends to other corners. Therefore, it is better to think twice before implementing any decision. This will safeguard future of the global economy as well as it will help fight debt crisis in different parts of the world. Kyles Humphrey is an experienced writer in oil related fields, who frequently writes articles related to oil prices & indexes and crude oil including tips on investment in oil. Please visit oil.com for more details.
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