Crude Oil Rises to $69 a Barrel for First Time in 2006

Influenced by supply apprehensions caused by diplomantic tensions between Iran and the global community, the price of crude oil hiked to $69 per barrel. It should be remembered that crude oil reached a record high of $70.85 a barrel on August 30, 2005 and was further aggravated by a series of weather disturbances.

International finance monitors noticed that market participants were watching developments in the row between the oil exporter and developed countries, fearing that if Iran's plans of resuming its nuclear program continues, then a discontinuation of the world's crude oil supply will be expected.

The increase in the world oil price was also influenced by the geopolitical drama in Nigeria, where militants held four foreign hostages. The captives were caught near an oil field operated by industry giant Shell on January 11, 2006 by a group who has repeatedly claimed responsibility for disturbing oil establishments in the country.