Commodity Daily News

Price of Oil Rises amid Supply Side Fears

Investor fears that Iran could close off a significant waterway used for oil shipments led to a spike in the price of oil in yesterday's trading. Iran has threatened to close the Strait of Hormuz, the waterway used to supply about a fifth of the world's oil, should the country's security be endangered. The price of oil also moved up yesterday, as positive euro-zone news boosted commodities throughout the day. As a result, oil was close to $102 a barrel for much of the day.

Turning to today, oil will likely maintain its current trend given that no expected breakthrough is predicted to resolve the current tensions between Iran and the West. Traders will want to pay attention to any news out of the Middle East. Any escalation in the conflict with Iran could cause oil prices to spike as markets close for the week.