Royal Dutch Shell Plc  .com Rotating Header Image

Reuters: Oil rises as Iran vows to pursue atomic work

EXTRACT: Royal Dutch Shell, Nigeria’s largest foreign oil producer, is losing a total of 495 000 barrels of oil equivalent per day of output it operates in Nigeria, largely due to militant attacks on installations.

THE ARTICLE

August 21, 2006, 21:15

Oil rose to almost $72 a barrel as Iran vowed to pursue its nuclear programme, inviting possible sanctions against the world’s fourth largest oil exporter.

Iran had said it would respond formally by tomorrow to Western incentives to halt nuclear enrichment.

“The bottom line is that Iranians will not accept the proposal, which means the UN will be talking about sanctions,” said Adam Sieminski, the chief energy economist at Deutsche Bank. “We could be in for a period of oil-price strength now, after a week and a half of declines.”

US crude was up 61c at $71.75 a barrel. London Brent crude rose 75c to $73.05.

Tehran could use oil as bargaining tool

The UN Security Council has demanded that Iran halt its nuclear work by a second deadline of August 31, raising the prospect of punitive action by the UN.

The West accuses Iran of seeking to develop atomic weapons under cover of a civilian nuclear programme. Tehran denies it seeks to make bombs, saying it only wants to make electricity.

Tehran at times has hinted it may use its oil exports as a weapon to defend itself in the row. Officials have said sanctions will harm the West more than Iran by sending oil prices even higher.

Nigeria violence

US crude has risen about 18% this year on concern the nuclear row could cut Iran’s exports of more than 2 million barrels per day and as violence in Nigeria reduced supplies.

In Nigeria, up to 10 militants were killed in a shootout with troops when they ran into a military convoy in the oil-producing Niger Delta, authorities said.

Royal Dutch Shell, Nigeria’s largest foreign oil producer, is losing a total of 495 000 barrels of oil equivalent per day of output it operates in Nigeria, largely due to militant attacks on installations.

Oil traders are also watching the week-old truce between Israel and Hizbollah, which the UN said yesterday, could easily collapse again if the UN resolution that engendered it was violated further. – Reuters

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

0 Comments on “Reuters: Oil rises as Iran vows to pursue atomic work”

Leave a Comment

%d bloggers like this: