Thursday, 12 July 2012

Oil rises as US adds Iran sanctions

Oil rose after the U.S. announced more sanctions on Iran, the second-biggest crude-producing member of the Organization of Petroleum Exporting Countries.

Futures climbed 0.3 percent after the U.S. said it will target Iran's weapons proliferation networks and "front companies" helping to evade international sanctions. Crude dropped earlier as the euro fell to a two-year low against the dollar and the International Energy Agency forecast "muted" growth in oil demand in 2013.

"Concern that the new sanctions will disrupt supply are lending the market support," said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. "The big picture for the global economy remains pretty bleak."

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