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Archive for Tuesday, February 21, 2012

Oil jumps to nine-month high after Iran cuts supply

February 21, 2012

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Oil prices jumped to a nine-month high above $105 a barrel on Monday after Iran said it halted crude exports to Britain and France in an escalation of a dispute over the Middle Eastern country’s nuclear program.

By Monday afternoon, benchmark March crude was up $2.02 to $105.26 per barrel in electronic trading on the New York Mercantile Exchange, the highest since May. The contract rose 93 cents to settle at $103.24 per barrel in New York on Friday.

Iran’s announcement will likely have minimal impact on supplies, analysts said, because only about 3 percent of France’s oil consumption is from Iranian sources. Britain had not imported oil from the Islamic republic in six months.

“The price rise is more a reflection of concerns about the further escalation in tensions between Iran and the West,” said commodity analyst Caroline Bain of the Economist Intelligence Unit. “Banning the tiny quantities of exports to the U.K. and France involves very little risk for Iran — indeed quite the opposite, it catches the headlines and leads to a higher global oil price, which is something Iran is very keen to encourage.”

Markets in the United States were closed Monday for the Presidents Day holiday.

Iran’s oil ministry said Sunday it stopped crude shipments to British and French companies in an apparent pre-emptive blow against the European Union after the bloc imposed sanctions on Iran’s crucial fuel exports. They include a freeze of the country’s central bank assets and an oil embargo set to begin in July.

Comments

Richard Heckler 2 years, 10 months ago

Oil is a dangerous commodity as Wall Street gamblers increase the cost of oil in their zeal to see their personal wealth increase. Some reckless spenders with too much money bring on inflation which I thought goes against the thinking of fiscal conservatives.

Where oh where did the fiscal conservatives of 32 years ago go...... oh where oh where did they go...... those reckless spenders bought the GOP and Wall Street then sent all of our jobs abroad... then in end the Wall Street Journal published the GOP in their obituary readings

bad_dog 2 years, 10 months ago

"The U.S. exported more oil-based fuels than it imported in the first nine months of this year, making it likely that 2011 will be the first time since 1949 that the nation is a net exporter of such goods, primarily diesel.

That's not all. The U.S. has reversed another decades-long trend. It began producing more crude oil in 2008 than the year before and accelerated that upswing 3% in the first nine months of this year compared with the same period in 2010. That production has helped reduce U.S. imports of crude oil by about 10% since 2006."

http://www.usatoday.com/money/industries/energy/story/2011-12-16/us-oil-boom/52053236/1

kansanbygrace 2 years, 10 months ago

He usually cites worthwhile perspectives based on reality. Sometimes those views are not the majority opinion.

Liberty275 2 years, 10 months ago

He usually just spams the same garbage.

Richard Payton 2 years, 10 months ago

Some of ya talking about vacations must of seen that dude getting maced at Disney. When's the environmentalist going to let big oil build a refinery?

gphawk89 2 years, 10 months ago

Well I hope Obama gets his wish. I wouldn't mind seeing gas prices double over the next 258 days. That might bring about some "change".

JackMcKee 2 years, 10 months ago

Santorum has a plan to cut gas prices in half. Women can't drive.

Armstrong 2 years, 10 months ago

The bold new chapter Obama getting ready to write for America - Chapter 7

uncleandyt 2 years, 10 months ago

So, let's make no sense of this story by____. Britain hasn't gotten oil from Iran for six months. France relies on Iran for 3% of its oil. The European Union imposes sanctions on Iran including an oil embargo set to start in July. Headline?, Oil jumps to nine month high after Patriots lose Super Bowl. Oil jumps to nine month high after nine months. Oil jumps to nine month high after continuing speculation. This little story wants to soften you up to the idea that a war against Iran is not your fault. Demand clearer propaganda.

Armstrong 2 years, 10 months ago

Wait for July's headline. Gas $5.50 per gallon. Unemployment 14% Hope and change ! Oh, No offshore drilling

somedude20 2 years, 10 months ago

There will always be a reason to hike up oil prices. I am sure there are groups of people that sit around all day being paid to come up with the next reason that takes more cash out of our pockets.

Good thing there is not a futures speculation for human life. They would speculate about when we are to die and then keep on hiking up your health insurance/life insurance coverage daily,weekly,monthly,yearly until you are broke or dead. KFC cooks up another 1,800 "meal" so the speculators will start raising your rates.

gl0ck0wn3r 2 years, 10 months ago

I'm waiting for a long cut-and-paste about peak oil.

somedude20 2 years, 10 months ago

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usnsnp 2 years, 10 months ago

A few questions to ask. If we are short of oil how come we export crude oil to Japan from Alasaka. If we are short of gasoline how come we are exporting gasoline to other countries. Keystone pipeline when it gets built is there any assurance that the crude oil that is shipped to Texas and refined will not be exported to the highest bidder. If you look into things there is nothing saying any crude oil or refined products refined in the United States has to be sold to the United States, oil companies can sell their product anywhere they want, that is called fair trade.

yourworstnightmare 2 years, 10 months ago

The price of oil is driven by two things: 1) The nearly constant and steady demand for the product in the USA. 2) Market speculation.

It is the latter that leads to seemingly irrational increases in oil, and is why national and world politics can influence the price. Because demand for the product is always high, normal supply and demand capitalism does not work with oil.

If the price of gas is too high, stop buying it. Walk. Ride a bike. Take the bus.

But please, please don't whine about the price of gas. It is so tiresome and vapid.

Armstrong 2 years, 10 months ago

Actually China uses the bulk of oil now. Government regulation has chased the bulk of our manufacturing to China, Taiwan, India..... The U S A -I O U keeps slipping down the list

Ron Holzwarth 2 years, 10 months ago

"China is a sleeping dragon. Let him sleep. If he wakes, he will shake the world." - Napoleon Bonaparte

jafs 2 years, 10 months ago

What happened to all of Iraq's oil?

jhawkinsf 2 years, 10 months ago

When a person (or corporation, or organization,or country) has the opportunity to do something, yet chooses not to, is that evidence that they did not intend to do that thing? Iraq's oil is in Iraq.

kernal 2 years, 10 months ago

It's short-sighted to be clamoring for more oil at the same relatively low prices that we're used to in the U.S., when Europe and other countries have been paying more than double what we do for each gallon of gas. For decades, we've been the major users of oil, but move over, because here comes India and China with their economic and industrial growth and more spendable income.

You think this is bad? Just wait 25 years. If we don't take drastic measures to change how we live now, there's a worse economic disaster than we ever dreamed of in the next 30 to 40 years.

Ron Holzwarth 2 years, 10 months ago

When the price of gasoline gets high enough, more Americans will purchase and drive C.N.G. powered cars. Or possibly electrics, but I tend to doubt that they will become mainstream within the next 50 years.

The United States has more natural gas than Saudi Arabia has crude oil, so there really isn't a long term problem.

The Honda Civic is a very nice car, and you can buy a C.N.G. powered one today in California, New York, Utah and Oklahoma. Here, have a look at it:

http://automobiles.honda.com/civic-natural-gas/

Ron Holzwarth 2 years, 10 months ago

This is not news at all. Only yesterday there was an article that covered Iran cutting off oil exports to Britain and France. Of course that would drive the price of crude oil up.

Was I the only one to realize that? I am amazed that I was the only person that commented yesterday. I have never understood why some articles draw a large number of comments, and others draw very few.

kansanbygrace 2 years, 10 months ago

Yes, Ron, rumor drives hysteria. Hysteria drives the commodity market.
Last year, the excess money was diverted to cotton. There was no shortage. Next was beans. Next, though there is a crumb of demand increase to feed yeast, corn was driven well beyond its worth. The gamblers next targeted coffee. Now it's back to oil. There have been no shortages of those commodities, but the gamblers chase each other from one product to another. The speculative market for "commodities" has eliminated the influence of supply and demand. Seems to me that all markets are now synthetically manipulated by those who neither produce, add value, nor use those commodities. And-- Our system is very, very broken. I could be wrong, we may very well be just flopping to the string jerked by some invisible alien, but it's hard to find evidence of that.

kansanbygrace 2 years, 10 months ago

Of course it is, FHNC. Economically, we are swirling around the dark hole at the bottom of our little run at Empire. The brokenness results in buyers of businesses selling off the assets earned by others, not themselves, and then they bitch about having to pay taxes to the government that favors them with the rules that allow their game in the first place.
Broken. Very, very broken.

gphawk89 2 years, 10 months ago

Gas was around SR1 per liter back in '03 - '04, which worked out to about $1/gal. Now, several years later, it's dropped to about half that. That certainly does put things into perspective.

yourworstnightmare 2 years, 10 months ago

Don't like high gas prices? Don't buy gas.

It's called capitalism. Look it up.

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