.
June 30, 2008
SouthAmerica: It is time for Iran to answer with a preview of things to come in case of such an attack.
Right now Iran can stage a major accident on the Straight of Hormuz and close that shipping route for a week or two until they get things under control â just to give a little taste to the rest of the world of what would happen when the Straight of Hormuz is closed for a number of months and no oil can be shipped from that area of the world.
The world would not blame Iran for such an event since the world knows that the United States and Israel have an official policy of pre-emptive strikes and Iran would just be playing by the rules set by these countries and their dangerous game.
Besides this little game would help push the price of oil above US$ 200 per barrel, and Iran could be laughing all the way to the bank to the tune of billions of extra oil revenues.
At this point the Iranians have to push one notch up this game of chicken and they can't just sit and watch, they need to do something to show that they mean business and to shake up the oil markets - let the fireworks start.
Iran has to play their part in this effort to bring the price of oil to $ 200 per barrel and according to an article published by the Financial Times today Gazprom president is forecasting that oil prices will reach $ 250 per barrel in the near future.
Let's put this show on the road.
Quoting from the enclosing article: "Foreign ministers from the Group of 8 nations last week suggested more talks to coax Iran into opening its nuclear program to inspectors, after speculation the country faces an imminent Israeli strike.
John Bolton, the former U.S. envoy to the United Nations, has speculated that Israel would strike Iran between the U.S. presidential election in November and the inauguration in January.â
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âOil rises to record on concerns about Iranâ
Bloomberg News
Published: June 30, 2008
London: Crude oil rose to a record above $143 a barrel on Monday on speculation the dispute over Iran's nuclear program may disrupt supply from the second-largest OPEC producer.
Pressure on Iran to end its uranium enrichment program and the falling value of the U.S. dollar may drive prices to $170 a barrel, the president of the Organization of Petroleum Exporting Countries, Chakib Khelil, said Saturday.
Oil is headed for its biggest six-month gain since 1999 as investors shun equities for commodities, looking for a hedge against a weaker dollar and quickening inflation.
"It is a risk Iran will take any measures to cut flows through that important region and the market is reacting to that," said Andy Sommer an analyst with HSH Nordbank in Hamburg. "There are some funds flowing from the equities side to commodities."
Crude oil for August delivery rose as much as $3.46, or 2.5 percent, to $143.67 a barrel in electronic trading on the New York Mercantile Exchange. It was at $141.95 a barrel at 1:24 p.m. in London.
Brent crude oil for August settlement rose as much as $3.60, or 2.6 percent, to $143.91 a barrel on London's ICE Futures Europe exchange, the highest since trading began in 1988. It was at $142.06 a barrel at 12:26 p.m. London time.
Foreign ministers from the Group of 8 nations last week suggested more talks to coax Iran into opening its nuclear program to inspectors, after speculation the country faces an imminent Israeli strike.
John Bolton, the former U.S. envoy to the United Nations, has speculated that Israel would strike Iran between the U.S. presidential election in November and the inauguration in January.
Nigeria's rank among producers in the Organization of Petroleum Exporting Countries has slipped from sixth to seventh behind Angola amid a renewal in militant violence. Chevron, Royal Dutch Shell and Eni have all closed fields there this month.
"Tensions ratchet up in Iran and troubles continue in Nigeria, drawing funds into the market," Robert Montefusco, a broker at Sucden in London, said before the latest record was reached. "The weak dollar is also helping. The market does not want to break down just yet."
The European Central Bank is expected to raise interest rates a quarter-percentage point to 4.25 percent, according to a survey of economists by Bloomberg News. The dollar has declined 7.3 percent this year against the euro.
Avoid the dollar "at all costs," the investor Jim Rogers said in Shanghai Monday. "The best investments in 2008 are commodities and natural resources.
Agricultural prices have much higher to go over the next decade. We have a shortage of everything including seeds."
Hedge fund managers and other large speculators almost doubled their bets on rising prices in the week ended June 24, according to U.S. Commodity Futures Trading commission data.
Source: http://www.iht.com/articles/2008/06/30/business/30oil.php
.
June 30, 2008
SouthAmerica: It is time for Iran to answer with a preview of things to come in case of such an attack.
Right now Iran can stage a major accident on the Straight of Hormuz and close that shipping route for a week or two until they get things under control â just to give a little taste to the rest of the world of what would happen when the Straight of Hormuz is closed for a number of months and no oil can be shipped from that area of the world.
The world would not blame Iran for such an event since the world knows that the United States and Israel have an official policy of pre-emptive strikes and Iran would just be playing by the rules set by these countries and their dangerous game.
Besides this little game would help push the price of oil above US$ 200 per barrel, and Iran could be laughing all the way to the bank to the tune of billions of extra oil revenues.
At this point the Iranians have to push one notch up this game of chicken and they can't just sit and watch, they need to do something to show that they mean business and to shake up the oil markets - let the fireworks start.
Iran has to play their part in this effort to bring the price of oil to $ 200 per barrel and according to an article published by the Financial Times today Gazprom president is forecasting that oil prices will reach $ 250 per barrel in the near future.
Let's put this show on the road.
Quoting from the enclosing article: "Foreign ministers from the Group of 8 nations last week suggested more talks to coax Iran into opening its nuclear program to inspectors, after speculation the country faces an imminent Israeli strike.
John Bolton, the former U.S. envoy to the United Nations, has speculated that Israel would strike Iran between the U.S. presidential election in November and the inauguration in January.â
*********
âOil rises to record on concerns about Iranâ
Bloomberg News
Published: June 30, 2008
London: Crude oil rose to a record above $143 a barrel on Monday on speculation the dispute over Iran's nuclear program may disrupt supply from the second-largest OPEC producer.
Pressure on Iran to end its uranium enrichment program and the falling value of the U.S. dollar may drive prices to $170 a barrel, the president of the Organization of Petroleum Exporting Countries, Chakib Khelil, said Saturday.
Oil is headed for its biggest six-month gain since 1999 as investors shun equities for commodities, looking for a hedge against a weaker dollar and quickening inflation.
"It is a risk Iran will take any measures to cut flows through that important region and the market is reacting to that," said Andy Sommer an analyst with HSH Nordbank in Hamburg. "There are some funds flowing from the equities side to commodities."
Crude oil for August delivery rose as much as $3.46, or 2.5 percent, to $143.67 a barrel in electronic trading on the New York Mercantile Exchange. It was at $141.95 a barrel at 1:24 p.m. in London.
Brent crude oil for August settlement rose as much as $3.60, or 2.6 percent, to $143.91 a barrel on London's ICE Futures Europe exchange, the highest since trading began in 1988. It was at $142.06 a barrel at 12:26 p.m. London time.
Foreign ministers from the Group of 8 nations last week suggested more talks to coax Iran into opening its nuclear program to inspectors, after speculation the country faces an imminent Israeli strike.
John Bolton, the former U.S. envoy to the United Nations, has speculated that Israel would strike Iran between the U.S. presidential election in November and the inauguration in January.
Nigeria's rank among producers in the Organization of Petroleum Exporting Countries has slipped from sixth to seventh behind Angola amid a renewal in militant violence. Chevron, Royal Dutch Shell and Eni have all closed fields there this month.
"Tensions ratchet up in Iran and troubles continue in Nigeria, drawing funds into the market," Robert Montefusco, a broker at Sucden in London, said before the latest record was reached. "The weak dollar is also helping. The market does not want to break down just yet."
The European Central Bank is expected to raise interest rates a quarter-percentage point to 4.25 percent, according to a survey of economists by Bloomberg News. The dollar has declined 7.3 percent this year against the euro.
Avoid the dollar "at all costs," the investor Jim Rogers said in Shanghai Monday. "The best investments in 2008 are commodities and natural resources.
Agricultural prices have much higher to go over the next decade. We have a shortage of everything including seeds."
Hedge fund managers and other large speculators almost doubled their bets on rising prices in the week ended June 24, according to U.S. Commodity Futures Trading commission data.
Source: http://www.iht.com/articles/2008/06/30/business/30oil.php
.