Oil Rises in New York on Iran Tension Amid Delays to Middle East Pipeline
Oil rose for the first day in three, climbing as much as 59 cents, or 0.6 percent, to $102.15 a barrel in electronic trading on the New York Mercantile Exchange. Crude for February delivery was at $101.93 at 10:05 a.m. Sydney time.
A pipeline that would allow oil from the United Arab Emirates to bypass the Strait of Hormuz separating it from Iran has been delayed because of construction difficulties, two people with knowledge of the matter said.
The 1.5 million barrel-a-day link would ensure the U.A.E. can export crude without risking a blockade at Hormuz, where fully laden tankers exit the Persian Gulf with one-fifth of the world’s traded oil. The chance that Iran might try to close the waterway has intensified as Europe prepares to follow tougher U.S. sanctions on the country.