Middle East Tensions Send Oil Higher

Supply side fears due to an increase in tensions between Iran and Western powers sent oil prices to a three-month high during European trading yesterday. In addition, an increase in oil consumption in the US, the world's leading consuming country, drove prices higher. Overall, crude advanced more than $1 a barrel to trade above the $95 level. Today, news out of the Middle East is likely to continue influencing the direction oil takes. Any escalation in the dispute with Iran may result in additional fears that global supplies could be disrupted and drive the price of oil higher.

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