As First Titan Corp. (OTCBB:FTTN) continues exploring new oil and gas opportunities in the Gulf of Mexico region, oil prices climbed to the highest level in five weeks on Wednesday after Iran threatened to cut off some crude exports to Europe in retaliation for a planned embargo later this year.
An interruption in Iranian shipments means European refineries could have to find new sources of oil sooner than they expected. The European Union, which buys about 18 percent of Iran's total crude exports, announced plans earlier this year to embargo Iranian oil this summer to pressure the country to abandon its nuclear program.
This latest incident in a series of Middle East political flaps is a prime reason why FTTN and other oil companies are working to develop new supplies in stable, developed nations like the U.S. The more crude oil that’s produced in the U.S., the less likely it is that Middle Eastern politics can trigger supply fears that drive up oil prices.
Continued political tensions could increase the profitability of U.S. drilling by keeping oil prices trending upward. FTTN has already made moves to capitalize, acquiring working interests in wells set to be drilled in Texas and Louisiana. Now, the company has turned its attention to bargain opportunities in the Gulf of Mexico as global energy demand continues to grow.
First Titan is working to develop new energy solutions to compete in a booming global industry alongside Continental Resources, Inc. (NYSE: CLR), Chesapeake Energy Corp. (NYSE: CHK), SandRidge Energy Inc. (NYSE: SD) and Ultra Petroleum Corp. (NYSE: UPL).
Source: Business Wire
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