Fears of losing Iran’s oil is helping fuel the prices higher of oil.
March 31, 2012– On Friday, the futures for crude oil edged higher. Fears about oil disruption in Iran, a weak dollar and an improved consumer outlook all helped to move the price higher on the day. Oil has increased more than 4% in just the first quarter of 2012.
Prices spiked late in the day following President Obama’s remarks that there is plenty of oil to make up for any imports that will be cut from Iran. By law, Obama had to determine by March 30 and every 180 days following if supply and price of non-Iranian crude are sufficient enough, so consuming countries can cut their purchases from the Middle East nation of Iran.
The law also gives the U.S. power, after June 28, of sanctioning international banks that take part in oil-related transactions with the central bank of Iran.
The price of oil has increased in part due to worries about its supply, with the European Union ban starting July 1 for imports of crude from Iran.
Consumer confidence in the U.S. returned to its highest level in 13 months during March. Reports about income and jobs were positive and helped to overcome the high prices people are encountering at the gas pump.
The dollar was down against the euro, as budget cuts by Spain helped boost the hope the country will maintain its austerity plan.