Ira News

The oil market has broken a two-year cycle of tightening supply conditions, the International Energy Agency said yesterday, as demand growth weakens and top exporter Saudi Arabia increases output.

The lack of large-scale international oil company investment contributes to modest output growth, with liquids production forecast to increase from an estimated 4.25mn b/d in 2010 to 4.45mn b/d in 2015.

Most commodity markets rose last week, boosted by Greeces second eurozone bailout and extra liquidity from central banks, while oil hit nine-month highs on rising tensions over crude producer Iran.

World oil prices spiked yesterday with London Brent striking a six-month peak after Iran warned that it was mulling the removal of its crude exports to six EU countries.

World oil prices gained last week on the Fed pledge to keep interest rates near zero and as traders eyed ongoing geopolitical concerns over key crude producer Iran Commodity prices mainly rose last week on the struggling dollar after the US Federal Reserve vowed to keep interest rates near zero for at least two years.