Oil Rises to One-Month High as Iran Cuts Exports, China Pledges Debt Help: report
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, Bloomberg reported.
It said crude futures in New York increased as much as 1.8%. 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.
Oil for March delivery rose as much as US$1.80 to US$102.54 a barrel, the highest since Jan. 12, in electronic trading on the New York Mercantile Exchange and was at US$101.35 at 12.39 p.m. London time. Prices have risen 21%in the past year.
Brent oil for April settlement gained US$2.31 to US$119.66 a barrel on the ICE Futures Europe exchange. The European benchmark contract's premium to New York-traded West Texas Intermediate for the same month was at US$16.92, compared with US$17.42 yesterday.
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