MC:Crude likely to record new high on supply worries: Mecklai
Mecklai graph of the day - Rally in Crude on the back of supply worries
Brent Crude touched its nine-months high to reach at $ 123.00 per barrel. Since October 2011, price of Brent Crude has risen around 29% and in last one month Crude oil gained 12%. Oil options volatility has also after International Atomic Energy Agency officials were denied access to an Iranian military base.
The heightened tension between Iran and the Western economies over Tehran's disputed nuclear program has been the major factor behind the sharp rally in prices of Brent Crude. The Concerns regarding oil Supply have erupted after Iran stopped exporting oil to 6 European nations before the sanctions are imposed on it by EU and US starting July 2012.
With talks with UN International Atomic Energy Agency (IAEA) having failed without resulting into any conclusion, the tension still remains elevated. If the political tension continues to weigh the investor sentiments, oil prices are likely to print a fresh- high.
