Today’s rampant fluctuation in oil was a perfect example of how much political and headline risk from Iran surround the markets. While nothing fundamental has changed from our initial assessment of the Iran situation seen here, all it took was Iran reiterating they are pissed and the IEA emphasizing to the EU that reserves exist for a reason.
NEW YORK—Iran’s threat to immediately halt oil sales to the European Union pushed prices above $101 a barrel, but crude retreated after the International Energy Agency later said it could release strategic inventories if a supply emergency occurred. Light, sweet crude oil for March delivery rose 30 cents, or 0.3%, to settle at $99.70 a barrel on the New York Mercantile Exchange, after hitting a one-week high of $101.39. ICE Brent crude gained 98 cents, or 0.9%, to $110.79.