Oil price jumps on report of lower Iran exports

[denem]

Last edited Sat Mar 24, 2012, 08:18 AM - Edit history (5)

Source: Business Week

NEW YORK. Oil prices on Friday briefly spiked to the highest level in three weeks following a report that Iranian oil exports dropped significantly this month.

...

Benchmark U.S. crude rose by $1.52 to finish at $106.87 per barrel in New York. Earlier, prices jumped by $2.95 per barrel in 13 minutes to $108.25, the highest price for benchmark crude since March 2. Brent crude, which is used to price oil imported by U.S. refineries, rose by $1.99 to end at $125.13 in London.

"The market's a powder keg with a very short fuse," independent oil analyst and trader Stephen Schork said.

Besides the headlines about Iranian exports, Schork said oil prices tend to rise anyway ahead of the weekend, when commodities markets are closed. Many people buy oil contracts as an insurance policy -- in case there is a flare-up of tensions in the Middle East, a pipeline explosion or some other unforeseen calamity that drives up oil prices, he said.


Read more: http://www.businessweek.com/ap/2012-03/D9TMD08G0.htm

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Let me rephrase 'the market's a powder keg'. The market's a scalper's paradise, underwritten by the mathematical certainty that rising prices fuel Exxon Mobil profits. There's nothing 'very short' about it. Were it the other way round, Big Oil would be in the derivatives market for altogether different reasons.

[Loudly]

1. The long side of any commodity contract is the safer side.

The short side exposes a speculator to virtually unlimited risk.

Except for one particular player who isn't doing its job correctly.

The Department of Energy.

The DOE has the Strategic Petroleum Reserve. If they sold ten West Texas Intermediate contracts (10,000 barrels) every five minutes on the Chicago Mercantile Exchange, they could break the backs of the longs, who would quickly be running for the doors, causing oil to crash.

Then the DOE could buy back its sell contracts at lower prices, thus making a profit and not having to release a single drop of oil.

Yes, it's that easy. Oil crashed in 2008 when the speculative bubble burst and the bears took charge. DOE needs to be the biggest and baddest of bears right now. They are sitting on the supply with which to do it.

[dmosh42]

2. But that's assuming they're working for the American people...

[Loudly]

3. I was hoping they would at least work for the President's re-election.

Unless DOE is all Big Oil stooges and Obama haters.

Could be the case.

[The Wizard]

4. The right wing lust for war with Iran

is a short peckered neocon's wet dream, and said war will make the United States a third world nation. Who would gain from war with Iran. When a crime is committed, following the money leads to the culprit. Who benefits from high oil prices? Who pays?

[madrchsod]

5. bullshit story from business week

there`s problems across the world`s oil suppliers right now.at the present time iran is`t factored in the equation . they may cut some production in the near future. iran is in the same boat as everyone else because they do refine oil so they have to buy on the open market.



http://www.vancouversun.com/business/million+barrels+world+supply+commission+March/6348587/story.html

[denem]

7. What a crock.

Fear versus greed is not an equation
of physical supply and demand.

the game is what?
the game is what?
the game is what?
the game is gaming
follow the money.

[bigdarryl]

6. The rethugs started this bullshit with there WAR MONGERING

And now there trying to blame the President for high oil prices