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Registered User
Joined: 6/1/2006
Posts: 48
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Iran, Lebanon, Syria, Israel... Does the USA import oil from any of these nations? Not from what I see online. Maybe some oil analysts out there know about this. Are any of the major oil-producing nations (that the US imports from), going to step into this conflict militarily? I doubt Indonesia or the Saudis will do a thing. Am I missing something, or is this a lot of media hype, and price gouging on the part of major oil companies based on "instability in the Middle East"?
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I think 99% of what the media says is hype.
After all if you listen to them. We face more "risk" from kitchen cleaners
than higher oil prices.
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Registered User
Joined: 12/6/2004
Posts: 48
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Middle East "instability" is a valid risk premium built into oil prices. The greatest risk to oil supplies is a radical Islamic insurgency in Saudi Arabia that takes out or undermines the Saudi royal family. As fighting increases in the region, the risk of sparking an insurgency in Saudi goes up. Secondarily, the recent Hezbollah missile that hit an Israeli ship must be a scary prospect to oil tankers, who would be an easy target. Plus, there's the hurricane risk premium that has to be added too.
If you're looking for price gouging by Big Oil, it's to be found in gasoline pricing, not oil pricing. Big Oil plays games with gasoline refinery capacity, production shutdowns, etc.
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Registered User
Joined: 10/7/2004
Posts: 2,126
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Isn't coincidental and convenience that in a moment in history in which most civilized nations are all over Iran and its nuclear program that for the kidnapping of just 2 soldiers from Israel border with Lebanon a war has started. Is it just my reasoning or simply obvious that IRAN who supports Hammas, and who hates Israel backs up Lebanon and provide weapons for its war may be right behind this too. Add Syria to the picture so the weapons flow into Lebanon on a constant basis and you have a ring of nations Iraq, Iran, Syria, Palestine and Lebanon as opposition to the US middle east manipulation (not to mention any terrorist organizations as Al Caida). I think they are clearly saying enough is enough. And you are going to pay with blod and $$ in the form of Oil taxation(which is what you can call increases in the price of crude), war and terrorist attacks.
Whether US imports oil from them or not is not an issue here. YOu must take Oil as a global commodity. If any of the supplying countries lower their output then by the laws of supply and demand your demand has just increased and so does the price. I think they are getting it down to a T. In my opinion, and considering the impression that the rest of the world - primarily the middle east - has of the US, it is going to be a long time before the price of crude, not to mention gasoline comes down. If it ever does.
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Registered User
Joined: 3/25/2005
Posts: 864
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The Longer the oil prices stay above $60 per barrel, the better it is for the Oil Sand Producers to get us our supposedly to be never-ending oil supply from Canada. So, in the long run, sustained higher oil prices should be a good thing for us and gasoline prices should drop precipitously back to $2.00 or less per gallon in time. Let's just hope this happens much sooner than later.
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Registered User
Joined: 10/7/2004
Posts: 82
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No one knows what oil will do in the future that's why we use charts each day and change our trade appropriately. I trade USO to take advantage of oil (long or short) to hedge my portfolio.
~Bob
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