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Crude Rallies on US Employment & Concerns About Iran

December 3, 2011 at 4:26 by Vladimir Vyun

Crude oil jumped as tensions around Iran grow. The Iranian nuclear program made the Western countries really nervous.

The US Senate prepared a bill that would allow the president to forbid foreign financial institutions that are dealing with Iran’s central bank to have an account in the United States. Such bill, if it would pass, would make hard for foreign companies to pay for Iran’s oil. The European countries tightened the sanctions on Iran yesterday. The Great Britain ordered Iran to close its embassy in London after the UK embassy in Iran was attacked by protesters. The political turmoil causes concerns that supply from Iran may be disrupted.

The outlook for demand improved as the US unemployment rate unexpectedly fell by 0.4 percent to 8.6 percent last month and the nonfarm payrolls were better than predicted.

January contract for crude oil delivery gained $0.76 to $100.96 per barrel on NYMEX, the highest level since November 16. Brent crude rose from $109.09 to close at $110.20 per barrel on ICE.

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