The price of Brent crude opened today’s trading session hovering at $109 a barrel and looks bullish as supply concerns of crude out of the Middle East had investors and traders back in buy mode. Latest Brent Oil Price In London, Brent crude oil futures for February 2012 delivery was trading at $109.10, 08.20 GMT this morning on the ICE Futures Exchange after rallying for six straight trading sessions. Middle East Oil Supply Concerns Iran’s first vice president warned on Tuesday that the flow of oil through the Strait of Hormuz would be stopped if foreign sanctions were imposed on Iran’s crude exports over its nuclear ambitions. The remarks coincided with a ten day Iranian naval exercise in the Strait and nearby waters, a show of military force that began on Saturday. “I’m a long term bull and what we are seeing is justification as to why you want to be in for the long term. The issues are not going to be resolved quickly as to how supplies are going to be managed if we impose sanctions on Iran.� said Greg Smith, executive director of Global Commodities. “Certainly the market’s nervous, these comments coming out of Iran have traders attention, and in a very thin market it’s exacerbated the move up. The Strait of Hormuz is a critical juncture in oil transportation. Even the threat it could be closed is incredibly disruptive.� said Peter Donovan, an oil trader and vice president at Vantage Trading. The Iranian remark was the latest escalation of tensions between Iran and the West, which have been simmering since early November after the IAEA publicly accused Iran of harbouring nuclear weapon ambitions. Since then, a group of Western nations including the US, France and the UK have announced sanctions against Iran’s financial and oil sectors.

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