While the top ten oil consumers in the world might not want to hear it, oil reached a nine-month high in New York. The price increase comes after Iran said it halted some crude oil experts. As Europe gets closer to bailing out Greece, investors predict the fuel demand will soar. It is sure to be music to the ears of the top ten highest oil producers and exporters.
Oil Reaches Highest Prices in Nine Months
With futures climbing up to 1.9 percent for a fourth day of gains, it is the longest rising oil price stream since the end of 2011. Prices are going up as European finance ministers get read to hash out a $172 billion package for Greece. Also, Iran now intends to supply crude oil to new customers rather than companies in France and the UK
According to electronic trading on the New York Mercantile Exchange, crude for March delivery increased up to $2.20 to $105.44 per barrel. This is the highest intraday price since May. Prices went up 4.6 percent last week. This year prices have soared up to 6.3 percent so far. Brent crude oil is up to about $120 per barrel, as seen in the video below.
Bloomberg reports senior broker at Jefferies Bache Ltd in London, Christopher Bellew, said, “The heightened level of tension surrounding Iran's nuclear program continues to support prices, as does satisfactory growth in the U.S. and China.”
Iran Ban on Crude
AIran warned about a suspension of crude exports that may preempt a European union ban on buying crude beginning on July 1. The U.S. and EU imposed sanctions on Iran to try to halt its nuclear program. During the first half of 2011, EU nations purchased 18 percent of Iran's crude exports with France buying about 4 percent and the U.K. getting around 1 percent.
EU indicated it has enough supplies of oil and petroleum products to get through the halt with 120 days of consumption. EU spokesperson Marlene Holzner said the 130 million tons was above the 90-day minimum, stating,” The continuity of supplies of crude oil and petroleum products to European consumers should therefore not be immediately affected, even in case of an abrupt halt of all imports from Iran.”
In light of the European finance ministers meeting at 3:30 p..m. in Brussels today, commodity fund manager at Astmax Ltd. In Tokyo, Tetsu Emon, said the sentiment in the market changed over the past week with the news Iran stopped some exports which may have pushed up prices. According to Emon, “The euro countries have no choice but to accept an agreement, otherwise everything will collapse.”
To boost economic growth and lending, China cut reserve ratios at its banks. Oil increased along with stocks with the MSCI Asia Pacific index at 127.96 in Tokyo.
The San Francisco Chronicle reported that according to the EIA, China purchases 22 percent of Iran's exports. I recent months, China has purchased an additional 200,000 barrels a day of oil from Iran.
With sufficient reserves on hand, EU member counties are cutting oil purchases from Iran. These 27 countries include the U.K, the Netherlands, Austria, Belgium and Portugal. Other countries are reducing imports including Greece, Spain and Italy.
Top Ten Oil Producers on the Planet
An examination of the top ten oil producers in the world is based on the CIA World Factbook data regarding the total oil produced in barrels per day. Discrepancies between the amount of oil produced and exported include refinery gains, stock changes and other complicated factors.
1 Saudi Arabia 10,520,000
2 Russia 10,270,000
3 United States 9,688,000
4 Iran 4,252,000
5 China 4,071,000
6 Canada 3,483,000
7 Mexico 2,983,000
8 United Arab Emirates 2,813,000
9 Brazil 2,746,000
10 Iraq 2,642,000
Top Ten Oil Consumers on the Planet
Much like oil production, consumption discrepancies are caused by refinery gains, stock changes and other factors. The data from the CIA World Factbook is based on the total oil consumed in barrels per day. The data reveals the U.S. and EU are the largest consumers of oil in the world with China coming in third.
1 United States 19,150,000
2 European Union 13,730,000
3 China 9,057,000
4 Japan 4,452,000
5 India 3,182,000
6 Brazil 2,654,000
7 Saudi Arabia 2,643,000
8 Germany 2,495,000
9 Korea, South 2,251,000
10 Canada 2,209,000
Top Ten Oil Exporters on the Planet
Considering oil producers and oil exporters differ based on various factors, the following data from the CIA World Factbook reveals the top ten oil exporters on the planet. The totals are based on oil barrels exported per day and include crude and oil products.
1 Saudi Arabia 7,635,000
2 Russia 5,010,000
3 Iran 2,523,000
4 United Arab Emirates 2,395,000
5 European Union 2,196,000
6 Norway 2,184,000
7 Iraq 2,170,000
8 Kuwait 2,127,000
9 Nigeria 2,102,000
10 Canada 1,929,000
Rising oil prices are bad news to many Americans who already struggle to cover the cost of heat. Meanwhile, the federal cuts recently proposed by President Obama threaten to cut funds in half for heating assistance programs such as Low-Income Home Energy Assistance Program (LIHEAP).
Image Source: Wikimedia Commons