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Summary World oil prices surged to new nine-month highs on intensifying Middle East tensions.
World oil prices surged to new nine-month highs on Thursday, propelled by intensifying geopolitical concerns in the crude-rich Middle East region, traders said.Brent North Sea crude for delivery in April soared as high as $124.50 per barrel, reaching a level last seen early May 2011.New Yorks main contract, West Texas Intermediate (WTI) light sweet crude for April, rallied to a similar high at $106.80.The strong upside rally in the oil market continues as WTI crude oil surged above $106 per barrel, while Brent oil retested the $124 per barrel area, said Sucden analyst Myrto Sokou.It seems that oil market looks overbought, while geopolitical tensions in Iran and Syria continue to remain the main driver amid the uncertain macroeconomic conditions.In addition, there are ... reports that Japan will seek to decrease imports of Iranian crude by up to 20 percent which should only serve to increase energy costs within the country as the worlds third largest crude importer.The oil market had already spiked Tuesday on news that the European Union and Greece finally agreed a second bailout deal, while developments in key crude producer Iran also boosted prices.A fruitless visit to Iran by UN nuclear inspectors raised tensions on Wednesday, with Russia warning of catastrophic consequences if it leads to a military attack on its Middle East ally.Washington expressed disappointment, and France said Irans refusal to let the inspectors in to a key military site was a missed opportunity that could undermine chances of reviving wider talks between Tehran and world powers.But Irans supreme leader, Ayatollah Ali Khamenei, was defiant and reiterated the assertion that the Iranian nation has never been seeking an atomic weapon and never will be.The visit by the team from the International Atomic Energy Agency (IAEA) was aimed at clarifying issues surrounding possible military aspects of Irans nuclear programme.
