Oil jumps as Iranian commander calls for boycott

An OPEC source told Reuters that the Iranian call would not sway other members of the Organization of the Petroleum Exporting Countries.

 

A strong start to the new year for stock markets, mounting evidence of OPEC's compliance with production cuts, and the U.S. Energy Department's decision to start rebuilding its crude reserves have also helped oil to a third day of gains.

 

Oil prices have risen by more than 25 percent since Israel launched its Gaza offensive on Dec. 27.

 

U.S. crude for February delivery rose to an early high of $48.68 a barrel on Monday -- the highest since Dec. 15 -- before paring gains on profit-taking. The price was up $1.07 at $47.41 a barrel at 1030 GMT. London Brent was up $1.17 at $48.08.

 

"Saber rattling by Iran and further instability in the Middle East always produces fears for oil supplies, which is putting a platform under prices," said Bank of Ireland analyst Paul Harris.

 

The Gaza violence does not directly threaten any oil supplies, but traders said there was underlying concern it could affect other countries in the Middle East, the origin of a third of the world's crude, with No. 4 oil producer and OPEC member Iran typically the most vocal.

 

An Iranian military commander has called on Islamic countries to cut oil exports to Israel's supporters in Europe and the United States in response to the offensive in Gaza, the official IRNA news agency reported on Sunday.

 

However, core OPEC oil producers in the Gulf were likely to ignore Iran's call, an OPEC source said on Monday.

 

"There are no plans to do this and I think it is very unlikely," the source told Reuters.

 

OPEC's most influential member Saudi Arabia and neighbors Kuwait, the United Arab Emirates and Qatar are regional allies to the United States.

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