Spot Crude Oil Prices Rise on Iranian Threat
December 19th, 2009 Posted in Oil and Precious Metals
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Spot crude oil prices rose back above $74 after a report surfaced of an Iranian military incursion into an Iraqi oil field. This touched off supply concerns in the Middle East, fueling the price rally.
Crude oil is currently trading at $74.34 after opening the day at 74.03. The price rallied as high as $75.58. This was in line with the rally of the dollar as the greenback rose sharply against the euro and the yen. The dollar was up today just before the New York Close 0.3% versus the euro and 1.1% against the yen.
The rise in prices was due to reports that Iranian troops have occupied an Iraqi oil field. There have been no violence reported, but the incident is being monitored. The wells have been contested for a number of years now.
Interestingly enough, we saw the dollar appreciate, and at the same time, spot crude oil prices also rose alongside the dollar’s rally. This shows a sign of a potential break in tried and true inverse relationship between the dollar and spot crude oil prices.
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Tags: Commodities, Crude Oil, dollar, spot crude oil, spot crude oil prices
