- Title: USA: Oil prices rise slightly after Iran launches test missiles
- Date: 10th July 2008
- Summary: (BN13) NEW YORK CITY, UNITED STATES (JULY 9, 2008) (REUTERS) (SOUNDBITE) (English) FIDEL GHEIT, MANAGING DIRECTOR OF OIL AND GAS RESOURCES AT OPPENHEIMER, SAYING: "I can guarantee you that you are going to see some of the investment banks talking about two hundred dollar oil and three hundred dollar oil - I recently met with somebody who was talking about five hundred dol
- Embargoed: 25th July 2008 13:00
- Keywords:
- Location: Usa
- Country: USA
- Topics: International Relations,Economic News
- Reuters ID: LVAHC3ZWYJYLU8SSJ9HY82LCJIA
- Story Text: Oil rose 2 U.S. dollars to near 138 U.S. dollars a barrel on Wednesday (July 9), partly recouping a 5 dollar drop in the previous session, after Iran said it had test-fired missiles that could reach Israel and U.S.
bases in the region.
"I do believe the situation gave oil traders some momentum here to make up for the losses in the last two days but again oil prices have been rising one way in the last twelve months and the minor correction we had in the last two days now came to an end," said Fidel Gheit, Managing Director of Oil and Gas Resources at Oppenheimer.
Oil fell more than 5 U.S. dollars on Tuesday (July 8) on a firmer U.S.
dollar and a rally in U.S. shares, which drew cash away from the commodities complex. U.S. crude had slid nearly 10 dollars from last week's record high of
85 dollars a barrel.
Iran's missile tests come at a time of increased tensions over its nuclear programme, once again highlighting the geopolitical risks in the oil market.
Iran's state media reported the test-firing of nine long-and medium-range missiles, including one Tehran has previously said could reach Israel and U.S. bases in the region.
Iran, the second-largest oil producer in the Organisation of the Petroleum Exporting Countries, says its nuclear programme is for power generation, whereas the West fears it is aimed at making bombs.
Amid an escalating war of words with Israel, an aide to Iran's Supreme Leader was quoted on Tuesday as saying Iran would hit Tel Aviv, U.S. shipping in the Gulf and American interests around the world if it was attacked.
Despite the threat of instability in the Middle East and its potential impact on oil supplies, many analysts say it is fear mongering and speculation that is driving the price of oil higher.
"We need to have a responsible government in this country to finally end this mockery,' said Gheit. "This is the fleecing of America and it has been going on before our eyes for too long."
Oil prices are up 42 percent this year, boosted in part by investors seeking a hedge against inflation and the weakening dollar, or fleeing a downturn in equity markets. - Copyright Holder: REUTERS
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