Oil climbs over $73 on worries over Iran flows

[UpInArms]

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=06&dd=05&file=3

SINGAPORE -- Oil prices climbed over a dollar to above 73 dollars on Monday after Iran hinted it might use oil production as a weapon in its nuclear dispute with the West and hitches at US refineries spurred worries over fuel supplies. US light crude for July delivery traded 1.07 dollars or 1.5 percent higher at 73.40 dollars a barrel by 0108 GMT, after gaining 1.99 dollars on Friday. London Brent crude rose 1.22 dollars to 72.25 dollars a barrel.

Iran's Supreme Leader Ayatollah Ali Khamenei said if the United States makes a "wrong move" over Iran, energy flows from the world's fourth largest exporter will be endangered.

"The gains are a combination of everything but most importantly it's Iran," said broker John Brady from ABN AMRO in New York. "We've had mixed messages before but it certainly stokes fears."

Tension between Iran and the West over Tehran's nuclear program have helped drive oil's 20 percent rally this year.

Iranian officials have previously ruled out using oil as a weapon in their nation's nuclear standoff with the West, but Khamenei's comments suggested Iran could disrupt supplies if pushed.

...more...

[al bupp]

1. Get ready for oil at $100/barrel within a year

I think that's even w/o any conflict w/ Iran.

[Rageneau]

9. BartCop predicted $100/bl oil a year ago.

Because he says nothing affects the price of oil except oil company greed and government acquiesence to it.

It ain't left vs. right.
It ain't democrat v s. republican
It ain't liberal vs. conservative

It's rich vs. poor. And always has been.

[al bupp]

14. I agree that the price has little to do w/ politics

However, the bigger single factor effecting the price is simple supply and demand. On the demand side there are two elephants in the room, namely China and India.

[Orsino]

16. Anyone can predict $100/bbl.

Predicting when it will happen might impress me.

Finite resource, the basis of entire economies? Yeah, the price is only going up.

[rodeodance]

2. oh crap!

[rodeodance]

3. Rice says "wait and see" on Iran oil threat hint

http://news.yahoo.com/s/nm/20060604/pl_nm/nuclear_iran_usa_dc;_ylt=At8UaVgFebkOzwUnEHxrvyRg.3QA;_ylu=X3oDMTA4NGRzMjRtBHNlYwMxNjk5

Rice says "wait and see" on Iran oil threat hint

By Eric Walsh Sun Jun 4, 5:39 PM ET

WASHINGTON (Reuters) - U.S. Secretary of State
Condoleezza Rice took a wait-and-see approach toward
Iran's next moves in a dispute over its nuclear ambitions, after the country's top religious leader suggested on Sunday it could disrupt oil supplies if pushed.
ADVERTISEMENT

"Well, I think we shouldn't place too much emphasis on a move of this kind; after all Iran is very dependent on oil revenue," Rice told Fox News Sunday.

Asked whether Iranian leaders had already rejected a six-nation diplomatic initiative, by insisting there be no preconditions for new talks on their nuclear program, Rice said Iran had not yet received the proposal and would need time to assess it.

"It's sort of a major crossroads for Iran, and it's perhaps not surprising that they will need a little bit of time to look at it," she told Fox News.

[cliss]

4. For once, the news is doing its job.

They're making a very clear connection between high oil prices and Iran.

Bush saber rattling = higher prices at the pump.

I hope every single American makes that connection, as they are driving around listening to the radio. Suddenly, the news comes on. The radio announcer says, "There is fear that Iran may restrict its oil output due to the threat of sactions. This has forced oil prices close to a record-high, once again".

The driver is sitting at the pump, getting some gas. He pulls out his debit card, and is shocked at how much it costs to fill up the tank.

He figures it out, right then and there.

[OrangeCountyDemocrat]

5. It's The Least Of Our Problems

We have Sooooo Many problems, but if it takes higher gas prices to tick off Joe Schmuck American, then fine.

It may just be higher oil prices which triggers the whole house of cards to crumble. Along with the softening housing market, and consumers spending less, we may finally see some trouble in this "booming" economy they keep talking about.

[UpInArms]

7. well, lookie here - even the Whoreshington Post is talking about it

Oil climbs $1 over $73 on Iran worries

SINGAPORE (Reuters) - Oil prices climbed over a dollar to above $73 on Monday after Iran hinted it might use oil production as a weapon in its nuclear dispute with the West and hitches at U.S. refineries spurred worries over fuel supplies.

U.S. light crude for July delivery traded $1.07 or 1.5 percent higher at $73.40 a barrel by 0108 GMT, after gaining $1.99 on Friday. London Brent crude rose $1.22 to $72.25 a barrel.

Iran's Supreme Leader Ayatollah Ali Khamenei said if the United States makes a "wrong move" over Iran, energy flows from the world's fourth largest exporter will be endangered.

"The gains are a combination of everything but most importantly it's Iran," said broker John Brady from ABN AMRO in New York. "We've had mixed messages before but it certainly stokes fears."

Tension between Iran and the West over Tehran's nuclear program have helped drive oil's 20 percent rally this year.

...more...

[AzDar]

17. "Whoreshington Post"...LOL!! n/t

[bluestateguy]

6. Well, there goes that "cheap" $2.65 gas I was enjoying

nt

[Up2Late]

8. I'm becoming more and more convinced that this "get tough" with Iran...

...rhetoric is just that, a bunch of empty rhetoric, coordinated with the "President of Iran," who's about as "on charge" as our so called "president" in order to drive up the price of Oil, or to use as cover story for why Oil prices are so high.

I recently heard on the Public Radio show "Marketplace" one of their commodity experts say that the price of Oil has about $20-$30 dollars of "market nervousness" built into the price because of the situations in Iran, Venezuela, Iraq, Niger Delta, "Gulf Coast," etc., all of which are situations that are completely manufactured tension, due to the Bush Cabal's "tough talking."

I bet with a competent U.S. Government, or one without a major conflict of interest regarding Oil prices, we could knock AT LEAST $20 per barrel off the price of Crude Oil.

[legin]

13. The hypothetical maths (I think)

You have a someone who is delivering 4 tins of Tuna to you doorstep every month.

The 4 tins arrive regularily on the first of the month, so that in a year you recieve 12 x 4 = 48 tins each year.

One day you get a knock on the door. The delivery guy is standing there and he tells you that there are some supply problems, that there is a 25% probability of disruption of supply.

So from now on every month there is a 25% chance that you will not get your 4 tins of Tuna.
So on average for a quarter of the 12 months in a year (= 3 months) you will not get your tins.

So the number of tins that you get in a year is 9 x 4 = 36. This is an average of 3 tins per month.

So the equation for the supply of tins is :

The actual supply = the supply - the supply x the probability of disruption.

[legin]

15. So in effect there are two componants to the supply of oil

One, the emperical measure of the number of barrels being pumped around the world.

And two, the rather woolly 'perception' of the chances of it's disruption.

You could have a lot of fun with this woolly 'perception', and people do.

[Phoonzang]

10. Are we tired of having the price of oil..

..shoot up because someone sneezes in the middle east yet? Maybe it's time to actually do something to get us off this ridiculouly unreliable source of energy? Nah...

[liberal N proud]

11. The bu$h regime is doing everything they can to screw the American people

Making every effort to see that gas prices stay high and helping drive the profits up for their buddies in the industry.

[The Anti-Neo Con]

12. More price gouging

coming to a pump near you!