Oil prices hit a nine-month peak of over $105 a barrel

Oil prices reached a nine-month record breaking value of over $105 per barrel yesterday, after Iran announced on Sunday that it stopped supplies to Great Britain and France, in light of the escalating tensions related to Tehran's nuclear program, reported AP.

As of the early afternoon, prices for March deliveries increased by $1.91 to $105.15 per barrel in electronic trading on the New York Mercantile Exchange. Earlier in the day, the price reached $105.21 per barrel, the highest level which has been recorded since May.

After the Oil Ministry of Iran announced on Sunday that it had stopped its supplies to British and French companies in response to the European oil embargo, which should enter into force in July, Belgium, the Netherlands and the Czech Republic cancelled in advance their imports of the raw material from the Islamic Republic, announced European Commission Energy Spokesperson Marlene Holzner, quoted by Reuters.

“The European Commission has no official data on the amount of oil that France imported from Iran,” said Holzner, but added that the French energy giant Total had suspended imports, and Britain, Austria and Portugal had long since stopped buying Iranian raw materials. The EU, which imports about 18% of the Iranian oil has reserves sufficient for 4.5 years, even if it is not able to find alternative suppliers after the entry into force of the oil embargo against Iran,” explained Holzner.

“Fuel prices in Bulgaria may continue to increase in the coming days,” forecast representatives of the management of gas station chains in the country.