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Oil Prices Down as Sanctions Against Iran Postponed, Cattle Climbs on Demand for Beef

January 13, 2012 at 21:19 by Vladimir Vyun

Crude oil declined today as threat of sanctions against Iran lessened. There are rumors that the International Atomic Energy Agency will discuss with Iran its nuclear program. In the meantime, European Union officials said that an embargo on Iranian oil exports may be postponed for six months. There is no more rush to buy oil and prices reacted accordingly. February futures for crude oil delivery slipped $0.79 (0.8 percent) to $98.31 per barrel by 13:36 on NYMEX. Brent oil declined from $111.01 to $110.91 per barrel as of 20:53 GMT today on ICE, while earlier it touched $109.71 — the lowest price since January 3.

Cattle advanced as demand for beef rose, while supply decreased. Beef price increased 5 percent in the United States this year, following the 10 percent increase in 2011. Beef exports jumped 25 percent in the 10 months ended October 31 from a year ago, while cattle herds were record small last year. April futures for cattle delivery rose 0.9 percent to $1.264 per pound at 13:00 on CME.

If you have any questions and comments on the commodities today, use the form below to reply.

One Response to “Oil Prices Down as Sanctions Against Iran Postponed, Cattle Climbs on Demand for Beef”

  1. Central Bank News

    The oil factor is probably the biggest upside risk to inflation this year (aside from quantitative easing), especially for emerging markets – which tend to see a more direct flow through of commodity price inflation to general inflation. Thus, Iran is a key wildcard this year…

    [Reply]

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