Increased oil prices amid concerns about Iran

30/09/2009

Oil prices rose to almost $67 per barrel on Tuesday (September 29th), ahead of further data later on Tuesday about the current US economic situation.

Discovery of a previously unknown nuclear facility in Iran has caused concerns about the Straits of Hormuz, an essential supply line for 20 per cent of the world's crude oil, reports the Associated Press.

Fears of possible tension between Iran and the West and the threat to the route that it could be pose has pushed up prices.

Ben Westmore, energy analyst with National Australia Bank in Melbourne, told the newswire: "Investors are still buying on dips around the mid-$60s level. Most people are reasonably confident that over the next 12 months oil is going to move higher."

He added that the gains in the US equity market had aided the situation.

Earlier this week Peter Beutel, president of Cameron Hanover, described Iran as the greatest threat to the global economy in 2010.