Another reason for the increase in oil prices is Spain’s far-reaching steps i.e. the announcement of severe budget cuts and the expectation that more liquidity will be provided by China’s Central Bank to the China’s financial system that will mitigate the floating anxieties (deficit reduction targets) in the world markets. Analysts at Credit Agricole CIB in Hong Kong said in the market commentary, “Spanish Budget has improved the risk appetite yesterday”.
Israeli President Netanyahu addressed the U.N. General Assembly and said that a red line needs to be drawn to stop Iran’s nuclear ambitions. “The main problem is not when Iran will get the bomb but the stage when we will no longer be able to stop Iran from acquiring the bomb”, he said during his speech.
Netanyahu further stated that, “Red lines are for the prevention of war and mostly aggressions between countries are the result of failure of right placement of these lines. This line will make Iran back off giving us time to come up with policies to convince Iran to disassemble its nuclear weapons program”. He addressed the General Assembly urging that these problems require urgent action.
He continued’ “If Iranians will maintain their current enrichment speed then they will proceed to the final stage by the next summer after finishing their medium level Uranium enrichment. They have got enough supplemented uranium to develop the first bomb possibly a few weeks ago. The information that I am providing is based on the public reports by the International Atomic Energy Agency which is accessible online by everyone rather than based on any military intelligence and secret information”.
Summit Energy analyst Matt Smith stated in his interview for Marketwatch (the financial news site), “This current public speech has moved the attention of oil market back to the oil supply concerns”.
On New York Mercantile Exchange, the benchmark oil for November delivery was $92.46 per barrel but the closing price for that crude was $91.85 a barrel after an increase of 2.1 percent on Thursday.