Crude oil prices increase slightly after Iran threats

Crude oil prices were somewhat higher, with Brent crude August contracts up 1 cent to $69.94 per barrel on the International Petroleum Exchange in London, while West Texas Intermediate crude for August delivery had gained 18 cents to $71.05 per barrel by mid-morning on the New York Mercantile Exchange.

Part of the gains had to do with a threat by Iran over the weekend that it would use oil as a weapon if there was a confrontation with Western nations over its nuclear enrichment program.  Meanwhile, in Iraq, the oil minister there said that his nation’s oil output could rival Saudi Arabia’s in a decade.  Oil production in Iraq was up in May.  Data also showed that demand for oil was up in China in May, with a 13.5 percent increase year-on-year as output has increased and exports were cut.