Mining News-Report the Price of Result Mine Exploration in Asian Market : Oil Prices Increase to Near $130 a barel in Asia

Oil prices rose on Monday in Asia to near $130 on concerns that the threat of new sanctions against Iran over its nuclear program may escalate tensions in the oil-rich Gulf region.

Talks on Saturday ended with Iran stonewalling Washington and five other world powers on their call to freeze uranium enrichment. In response, the six gave Iran two weeks to respond to their demand, setting the stage for a new round of U.N. sanctions.

The U.S. sent Undersecretary of State William Burns to the talks in hopes the first-time American presence would encourage Tehran into making concessions. But the talks’ lack of progress may lead to “further isolation” for Iran, the U.S. spokesman said.

Iran state radio quoted President Mahmoud Ahmadinejad as saying the talks were “a step ahead.”

“The talks didn’t resolve the problem of Iran’s nuclear program, and that has been a factor in prices ticking higher today,” said David Moore, a commodity strategist with Commonwealth Bank of Australia in Sydney. “Part of the reason prices had fallen recently was on the expectation a deal could be made there.”

Midday in Singapore, light, sweet crude for August delivery was up 70 cents at $129.58 a barrel in electronic trading on the New York Mercantile Exchange. The price increase Monday came after crude fell more than $17 a barrel from a record high of $147.27 on July 11.

Prices also rose on concerns that Tropical Storm Dolly may distrupt oil operations in the Gulf of Mexico, Moore said.

The storm drenched Mexico’s Yucatan Peninsula and was expected to reach the Gulf of Mexico Monday afternoon packing sustained winds near 50 mph.

“Over the next 12 to 18 months we expect prices to fall on demand side adjustments to the high prices,” Moore said. “But there are certainly chances for short-term spikes with issues such as Iran or storms.”

In other Nymex trade, heating oil futures rose 2.5 cents to $3.7175 a gallon (3.8 liters) while gasoline prices rose 1.91 cents to $3.19 a gallon. Natural gas futures rose 14.8 cents to $10.718 per 1,000 cubic feet.



FIND MORE :

· Russia’s Leading Uranium Miner To Set Up JV With France’s Areva

· Mine Drilling Project Raytec’s Athabasca Uranium Projects