posted on Jan, 17 2006 @ 08:39 PM
Even though the United States does not directly import Iranian crude, Caruso said a cutoff of Iran's oil would affect the U.S. market because other
countries that buy Iranian crude would compete with America to find new supplies.
Two pretty big events going on
Number One being the Nigeria situation
ATS: Armed Militants Storm US Oil Platforms In Nigeria
Nigeria exports 2.5 million barrels a day. Thus far, over 220,000 barrels a day have been cut due to evacuations and attacks, and the militants
continue to threaten the supplies if their demands are not met.
Oil is near $67 a barrel today, a level not seen since around the time Hurricane Rita set sights on the Gulf of Mexico.
Iran threatens the west with higher oil prices. They currently produce approximately 4.1 mbpd. Though the US doesnt receive any oil from Iran, China
receives somewhere around 12% of its oil from Iran. China is, of course, against UN Sanctions, and so is Russia. IMO, it would be stupid for Iran to
cut any of its supplies to China since it would hurt China, a business ally, more than the US, but Iran has warned of higher prices. (less output)
Around christmas time oil was in the $56 - $58 range. As of posting it's now $66.70.
The Nigeria thing is definitely having effect on the market. Speculators are also preparing for an Iran problem, but how much has Iran been
responsible for, since it's all just talk and no actions have been taken, yet.
Good news is, its a geopolitical event and oil will soon start tumbling down.
[edit on 17-1-2006 by Thatoneguy]