Oil Trades Near Nine-Month High on Iran Tension

Oil traded near the highest price in nine months after euro-area finance ministers agreed on a second bailout for Greece, improving prospects for fuel demand.

China’s crude imports from Iran in January fell 5 percent from a year ago and 14 percent from December, the General Administration of Customs said in a statement.

Oil futures for March delivery, which expire on 21 February, advanced as much as $2.20 to $105.44, the highest intraday price since May 5 on the New York Mercantile Exchange.

The EU said that member countries are cutting oil purchases from Iran and have sufficient reserves to deal with disruptions. The EU agreed to stop purchases of Iranian crude starting July 1 in a move to punish the Persian Gulf country’s nuclear program.

Japan’s government has yet to agree with the Obama administration on an exemption to a U.S. law that would punish banks doing business with Iran, Foreign Minister Koichiro Gemba said in Tokyo. Japan is still negotiating over cutting Iranian oil imports, he said.

Restoring Libya

Libya, holder of the largest oil reserves in Africa, won’t be able to restore oil production to pre-war levels before the end of 2013 at the earliest, Shokri Ghanem, the former chairman of Libya’s National Oil Corp., said in an interview on 20 February.

Libyan Oil Minister Abdul-Rahman Ben Yezza said on Dec. 14 that the country’s crude output will return to its pre-conflict level in the third quarter of 2012. The country is restoriing production disrupted by fighting last year that led to the ouster of then-leader Muammar Qaddafi.