Iran Cuts Oil Exports to Europe

Oil rose to its highest in a month as Iran said it had cut oil exports to six European countries and after China pledged to help resolve Europe’s debt crisis.

Crude futures in New York increased as much as 1.8 percent. Iran summoned the ambassadors of Italy, Spain, France, Greece, Portugal and the Netherlands to protest against the EU sanctions on the country’s nuclear program, state-run Fars news agency reported. China will invest in Europe’s bailout funds, the nation’s Central Bank Governor Zhou Xiaochuan said in Beijing. EU finance ministers will today prod Greece to deliver budget cuts in exchange for a second aid package.

“The market is all about fears of supply disruption, as we have these tensions in the Middle East and especially the conflict with Iran,” said Sintje Boie, an analyst at HSH Nordbank in Hamburg, who predicts Brent crude will surpass $120 a barrel in coming weeks. “We have seen some signs of stability in the debt crisis.”

Bloomberg

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Dean Popplewell

Dean Popplewell

Director of Currency Analysis and Research at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2007, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell