Oil prices up in Asian trade | Inquirer Business

Oil prices up in Asian trade

/ 11:31 AM March 05, 2012

SINGAPORE – Oil prices rose in Asian trade Monday on prospects for stronger US economic growth and jitters sparked by sabre-rattling over crude producer Iran’s nuclear programme, analysts said.

New York’s main contract, light sweet crude for delivery in April, gained 50 cents to $107.20 and Brent North Sea crude for April was up 32 cents to $123.97 in morning trade.

“A rosier world economy needing more energy and worries over supplies are putting upward pressure on prices,” said Justin Harper, market strategist for IG Markets in a note.

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Despite US President Barack Obama’s comments on Sunday calming fears of an imminent pre-emptive strike on Iran, “the fact that it won’t happen soon is unlikely to halt creeping prices for long,” said Harper.

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“Prices could still head upwards with improving economic data expected this week,” he added.

The United States is the world’s biggest oil consumer and a stronger US economy will mean greater demand.

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The diplomatic row between major Western powers and Iran remains a key influence on investors’ decisions, analysts said.

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Obama on Sunday criticised “loose talk of war”, and pleaded for patience in ending the nuclear stand-off with Iran, arguing that sustained international pressure would force Tehran to the negotiating table.

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His comments came amid reports that Israel is eager to move more quickly and decisively against Iran’s nuclear activities, using a military strike to prevent it even reaching a point where it can decide to produce atomic weapons.

Western powers have already 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.

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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.

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TAGS: Asia, Business, economy, News, oil prices

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