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Iran & Nigeria Push Oil Price Increase

Nigeria threatens to halt production of crude oil as part of a national strike against the United States. It triggers the rise in crude oil prices on world oil markets.

Nigeria which is the fifth largest crude oil exporter to the U.S. managed to hoist the price of oil approached $ 100 per barrel level for the negotiations to prevent a strike in Nigeria ended without result.

Analysts said oil supply will go down in the short term if it ceased production. Oil prices also rose as the European Union and the U.S. states will likely do the embargo to Iran next summer.

“I think oil prices will continue to strengthen as it is. We also have a common view that the U.S. dollar will remain weak, which makes commodities priced in dollars cheaper for those who transact using other currencies,” said commodities analyst from ANZ Natalie Robertson as quoted by the Associated Press (AP), Friday (13/01/2012).

Benchmark crude for February delivery rose 76 cents to USD99, 86 per barrel in electronic trading on the New York Mercantile Exchange. Prices are down sharply before the close Thursday in New York, settled $ 2 lower at USD99, 10, after reports that the EU may not be the oil embargo of Iran until the summer.

Brent crude rose 76 cents to USD111, 81 per barrel in London. Oil prices rose as talks between union officials and the Nigerian government on Thursday night ended without any notice. They are scheduled to resume negotiations on Saturday.

In other Nymex trading, heating oil rose rose 2.2 cents to $ 3, 08 per gallon and gasoline futures rose 2.7 cents to $ 2, 76 per gallon. Natural gas futures fell 1.3 cents to $ 2, 69 per 1,000 cubic feet

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