Deteriorating relationship between Iran and the West and last week's further falls in U.S. commercial oil inventories seem to be driving crude prices up. Monday witnessed oil prices settled at their highest level for the year 2007 as tensions mounted between Iran and the West following Tehran's detention of British naval personnel. Iran is OPEC’s second largest producer, and traders worry that an escalation in the conflict could cut Persian Gulf oil exports. On the New York Mercantile Exchange, light, sweet crude for May delivery settled at US$62.91 a barrel, the highest settlement for the front-month contract since Dec. 20. Brent crude contract for May delivery settled at US$64.41 a barrel on the ICE Futures exchange in London.
Tensions with Iran escalated after the United Nations voted to impose new and tougher sanctions against Iran for its refusal to stop enriching uranium, to show Tehran that defiance will leave it increasingly isolated.
27-Mar-07 
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