21:45
Syed Qasim Abbas
SINGAPORE (AP) — Oil costs hovered higher than $101 a barrel amid investor concern that rising Middle East tensions may disrupt crude provides.
Benchmark crude for February delivery fell twelve cents to $101.22 a barrel in electronic trading on the ny Mercantile Exchange. The contract rose $1.66 to settle at $101.34 in ny on Tuesday.
In London, Brent crude was up four cents at $109.31 a barrel on the ICE Futures exchange.
Iran's official news agency IRNA reported Tuesday that vp Mohamed Reza Rahimi said his country can shut the Strait of Hormuz, separating oil exports, if Western nations impose sanctions on Iran's oil shipments.
The U.S., the U.K. and alternative nations are mulling additional sanctions against Iran, the world's fourth-largest oil producer, over concern concerning its nuclear power program.
The Strait of Hormuz, the choke purpose of the Persian Gulf, is one among the world's busiest routes for crude shipments with a few sixth of the world's oil production passing through.
If tankers couldn't use the strait, they might got to take longer, costlier routes to their destinations, which might possible boost costs.
"We doubt political posturing can be converted into action, however oil remains higher than $100 regardless," energy consultant and trader The Schork cluster said during a report.
Schork estimates crude would jump to higher than $140 if Iran closed the Strait of Hormuz.
Signs the U.S. economy is improving conjointly helped bolster crude. The New York-based Conference Board said its shopper Confidence Index jumped nearly ten points from November, to 64.5, the best since April.
The National Retail Federation said it expects a three.8 % increase in Christmas vacation sales, up from its forecast of two.8 % in September.
In alternative Nymex trading, heating oil fell zero.4 cent to $2.91 per gallon and gasoline futures softened zero.6 cent at $2.68 per gallon. Natural gas was down zero.7 cent to $3.11 per 1,000 cubic feet.
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