Iran’s governor to OPEC said oil prices will continue to rise and the global market won’t be able to compensate for a loss of Iranian crude supply, the country’s state-run Mehr news agency reported.
“The increase of crude prices in the global market is likely to continue,” Mohammad Ali Khatibi was cited as saying.
Crude traded at the highest level in more than three weeks in New York, partly because of concern that tensions with Iran may hinder Middle East exports. The European Union agreed last month to ban oil imports from Iran starting July 1.
“The status of various oil producing nations shows that, in the current context, there is no possibility to find a replacement to make up for the oil ban against a country,” Khatibi said. Iran is the second-largest producer in the Organization of Petroleum Exporting Countries after Saudi Arabia.
Crude for March delivery advanced as much as 0.7 percent to $101.65 a barrel in electronic trading on the New York Mercantile Exchange, the most since Jan. 19. The contract was at $101.48 as of 11:05 a.m. London time.