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Oil Nears $74 in London

The price-per-barrel of oil has reportedly almost reached $74 in London this week, amidst demands by the West ? as well as Russia and China ? for Iran to give an answer to a package of generous incentives to get the Islamic Republic to stop uranium enrichment activities, the West, along with Russia and China, have set a deadline for July 12. Iran had originally stated, much to the chagrin of the international community, that it would not respond until mid-August, merely stating instead that some of the package. The price of a barrel of crude oil for delivery in August rose to $73.52 on Tuesday, while on Monday a barrel of Brent Crude stood at $73.99.

It is not just tension between Iran and the West that is driving up oil prices, but also concerns over a fall in the fuel supply of the United States, not to mention the incredibly high gas prices throughout the country. In April of this year, when tensions with Iran were quite higher than they seem to be at the moment, the price of a barrel of U.S. Crude reached $75.35, with a record high for Brent Crude Oil in May standing at $74.97 per barrel. U.S. contracts closed for August delivery on Friday at a price of $73.93 last Friday.

Oil prices may further rise if, as expected, the Islamic Republic refuses to comply with international demands. Even Beijing and Moscow, who have contracts with Iran, have tentatively agreed to support sanctions in the United Nations Security Council if Iran rejects the proposed incentives. Previously, the Chinese and the Russians have been adamant about their opposition to sanctions, but it seems Iran is testing their patience now too. Either way, oil prices will be affected.