Iran's Unrest Pushes Oil to Highest Level in 2.5 Years

A gas pump is seen hanging from the ceiling at a petrol station in Seoul June 27, 2011. REUTERS/Jo Yong-Hak
A gas pump is seen hanging from the ceiling at a petrol station in Seoul June 27, 2011. REUTERS/Jo Yong-Hak
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Iran's Unrest Pushes Oil to Highest Level in 2.5 Years

A gas pump is seen hanging from the ceiling at a petrol station in Seoul June 27, 2011. REUTERS/Jo Yong-Hak
A gas pump is seen hanging from the ceiling at a petrol station in Seoul June 27, 2011. REUTERS/Jo Yong-Hak

The price of crude oil has hit its highest level in two and a half years following the unrest in Iran. Brent crude futures, the international benchmark, were at $67.07 a barrel, up 0.5 percent, after hitting a May 2015 high of $67.29 a barrel on Tuesday.

According to Reuters, Carsten Fritsch, an analyst at Commerzbank, warned that prices faced a correction as support lent by unrest in Iran will weaken unless the situation begins to affect oil production, which is not yet the case, or the United States re-imposes sanctions.

Commerzbank expected the crude oil price to reach $60 in 2018. Traders say that markets have risen recently, at a time when it is likely that the US production will increase again amidst doubts that the demand growth would continue at its current levels.

Potentially undermining the trend towards tighter market conditions is US oil production C-OUT-T-EIA, which has risen by almost 16 percent since mid-2016, hitting 9.75 million barrels per day (bpd) at the end of last year.

There have been some concerns that Russia might not abide fully by its pledges with OPEC to curb oil output up to 300,000 bpd from its highest monthly level in 30 years, reaching 11,247 million bpd in October 2016.

The latest data of 2017 showed that Russia oil output increased 10.98 million bpd as an average, compared to 10.96 million bpd in 2016, and 10.72 million bpd in 2015.



Shell Denies Reports that the Energy Giant is in Talks to Take Over BP

FILE -This is the Shell Oil logo in front of a Shell gas station in Pittsburgh, June 25, 2025. (AP Photo/Gene J. Puskar, File)
FILE -This is the Shell Oil logo in front of a Shell gas station in Pittsburgh, June 25, 2025. (AP Photo/Gene J. Puskar, File)
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Shell Denies Reports that the Energy Giant is in Talks to Take Over BP

FILE -This is the Shell Oil logo in front of a Shell gas station in Pittsburgh, June 25, 2025. (AP Photo/Gene J. Puskar, File)
FILE -This is the Shell Oil logo in front of a Shell gas station in Pittsburgh, June 25, 2025. (AP Photo/Gene J. Puskar, File)

British oil giant Shell on Thursday denied media reports that it is in talks to buy rival BP.

The Wall Street Journal on Wednesday said Shell was holding “early stage talks,″ to acquire BP, citing people familiar with the matter.

“In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer,” Shell said in a statement to the London Stock Exchange.

Shell has repeatedly denied speculation that it was considering a takeover of its smaller rival BP, saying it was focused on streamlining and simplifying its own business.

Some analysts have suggested BP would be an attractive takeover after a plan to shift its focus to renewable energy, which was abandoned earlier this year, left its shares undervalued in comparison to other oil companies.

BP has also struggled to recover from the 2010 Deepwater Horizon disaster, which killed 17 workers and forced the company to pay billions of dollars for environmental damage in the Gulf of Mexico.