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Oil prices waiting for Iran outcome
AP
Iran's President Mahmoud AhmadinejadBy Elio Ohep
Petroleumworld
CARACAS
Petroleumworld.com 06 21 06
The world's oil prices are waiting out the outcome of Iran's nuclear program stand-off with the West. The oil price could triple if it spills over into a conflict, Iran's AHN reported Wednesday.Tehran is currently trying to figure out ways of ending disagreement.
However, Iran's President Mahmoud Ahmadinejad said Wednesday that Iran would take more than a month to give a formal response to an international proposal to resolve the dispute over its uranium enrichment program.
President Bush responded that it seemed "like an awful long time" to wait for an answer, reported the New York Times.
Presidend Bush said Monday, that nations of the West will not back down from their demand that Tehran suspend uranium enrichment, according to AHN news agency.
The proposal offers Iran a group of incentives in exchange for freezing its nuclear activities. The five permanent members of the United Nations Security Council and Germany, send the proposal to Iran and at the time, Western diplomats said Iran would have only weeks to respond.
That position appeared to remain intact on Wednesday. A senior Bush administration official said Secretary of State Condoleezza Rice, who was in Vienna with Mr. Bush meeting with allies, had telephoned her European counterparts, including Foreign Minister Sergey V. Lavrov of Russia, to discuss Mr. Ahmadinejad's comments, reported the NYT.
"They agreed to stick to the current timeline," the administration official said. "That timeline is still the end of the month."NYT quoted.
Iran is Opec's second largest producer of oil and analysts said that it may quell exports if the situation worsens.
Oil prices climbed on Wednesday as traders in a mix bag absorbed news of the political climate and industry news.
New York's main contract, light sweet crude for delivery in August, gained 99 cents to close at 70.33 dollars per barrel.
In London, Brent North Sea crude for August delivery added 1.09 dollars to end the session at 69.17 dollars per barrel.
- Elio Ohep, Editor@petroleumworld.cpom, 58 412 996 3730, Caracas.
Petroleumworld 21 06 06
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