STOCK MARKET WATCH -- Monday, 13 February 2012

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21. Oil Rises as Iran Supply Threat Grows, Greece Passes Austerity Measures

http://www.bloomberg.com/news/2012-02-13/oil-rises-as-greece-passes-austerity-measures-iran-supply-threat-grows.html

Oil recovered from a three-day low in New York as concern grew that a ban on Iranian crude may cut supplies while the Greek parliament’s approval of austerity measures boosted hope for a solution to Europe’s debt crisis.

Futures climbed as much as 1.3 percent as the euro headed toward a two-month high after 199 lawmakers supported the bill in a roll-call vote shown live on state-run Vouli TV, against 74 who opposed it. The measures were needed for a 130 billion-euro ($172 billion) aid package, Greece’s second since May 2010. Oil may extend gains after companies controlling more than 100 supertankers said they would stop loading cargoes from Iran, tightening sanctions on OPEC’s second-biggest producer.

“Iran is what’s really pushing crude up,” said Christopher Bellew, a senior broker at Jefferies Bache Ltd. in London who predicts prices may rise further. “If Iranian exports are choked off because of the insurance issue we will see higher prices. The stronger euro is contributing to today’s price increase, but I don’t think a bailout will lead to a miraculous recovery in Greece.”

Crude for March delivery rose as much as $1.32 to $99.99 a barrel in electronic trading on the New York Mercantile Exchange. It was at $99.78 at 12:57 p.m. London time. Futures fell 1.2 percent to $98.67 on Feb. 10, the lowest settlement since Feb. 7, and are up 18 percent from a year ago.