Oil prices fell to near $101 a barrel Wednesday as the European Union's efforts to block imports of Iranian oil appeared to be stalling. By early afternoon in Europe, benchmark crude for February delivery dropped 83 cents to $101.41 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 93 cents to settle at $102.24 in New York on Tuesday. In London, Brent crude was down 46 cents at $112.82 a barrel on the ICE Futures exchange. Oil prices rallied Tuesday after China said oil imports grew 6 percent from a year earlier in December. Strong demand for oil in China, the world's second-biggest oil consumer behind the US, is a boost to global crude prices. Tension between Iran and Western powers over Iran's nuclear program has also helped keep crude above $100. However, prices edged down Wednesday after the EU's plan to ban purchases of Iranian oil in hopes of choking off funding for the country's nuclear program were bogged down by issues such as exemptions for existing supply contracts. Officials have said exemptions for long periods of time would significantly weaken any proposed embargo. Some EU members, notably Greece, are also heavily reliant on Iranian oil. “There is a premium attached to oil prices due to the Iranian tension but efforts by the EU to impose an embargo on Iranian oil appeared to be stalling,” said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. The US has recently enacted new sanctions targeting Iran's central bank and its ability to sell petroleum abroad.
