Crude oil rose on Monday after Iran warned Western powers against further U.N. sanctions and amid concerns that Turkish attacks in Iraq may damage oil supplies.
Iran said on Sunday that if the Security Council of the United Nations proceeds with the resolution to sanction Iran on suspicion of nuclear activities for enriching uranium, the West will be affected.
Some Western powers areâ€¦choosing a wrong path and passing resolutions against Iran will be costly for them, Javad Vaeedi, deputy chief nuclear negotiator, was quoted by Iran's official news agency IRNA as saying. Vaeedi did not elaborate, Reuters noted.
Crude oil prices rose 0.50 cents, or 0.51 percent to $99.31 at 3:37 p.m. on the New York Mercantile Exchange. Brent crude prices climbed 0.85 cents or 0.87 percent to settle at $97.92 a barrel on London's ICE Future Exchange.
On Friday the International Atomic Energy Agency noted the opposition from Tehran to reduce its uranium enrichment, amid speculation the country is using uranium to produce nuclear bombs. The five members of the Security Council and Germany are meeting to discuss possible sanctions on Iran on Monday.
Tehran insists its program is to produce energy.
Furthermore, prices today found support on fears that supplies could diminish after Turkey proceeded with a major attack on the separatist Kurdistan Workers Party in the North of Iraq. The state-owned Northern Oil Company in Iraq said oil exports to Ceyhan in Turkey will not stop, reported Reuters.
Despite of the increase in clashes between Turkish and Kurdish some analysts say the attacks are unlikely to affect directly oil flows in the region and instead, are signs of political instability.