Oil climbed to $63 a barrel on Monday, setting a 2007 record, on growing tension between Iran and the West over Tehran’s nuclear work and its capture last week of British servicemen. The latest developments between Tehran and the West, while not affecting oil shipments, are adding a premium to prices over threats to supply, analysts said. Iran exports about 2.2 million barrels per day (bpd) of oil. “Perhaps a couple of dollars of risk premium has returned,” said Mike Wittner of investment bank Calyon. “Prices have ticked up, but I think as the market digests the news, other things being equal the Iran risk premium will start to fade again.” US crude hit a three-month high of $63.30 a barrel and was up 75 cents at $63.03. Brent crude gained $1.12 at $64.30. Iran had said that it would limit cooperation with the UN’s nuclear watchdog and would not halt its atomic work after the United Nations Security Council voted to impose new sanctions. Oil rose on Friday after Iran seized 15 British naval personnel in the Gulf. “The incident with the UK sailors is not a direct concern for oil supplies but it serves as a wake-up call,” said Petromatrix analyst Olivier Jakob. Iran is the world’s fourth-largest oil exporter. Countries in the Middle East pump more than a fifth of the world’s daily oil production of some 85 million bpd. China ends own oil monopoly BEIJING: China has opened up its crude and processed oil wholesale business to private and even foreign participation, further breaking the State monopoly in the sensitive and key sector. The new rules offer a level-playing field to foreign and overseas-funded companies in the country’s wholesale oil sector, the official China Daily reported.
