Suez Canal Closure Concerns Go Viral....$200-$300 oil?

Want to see a drastic increase in the cost of gasoline overnight?
Watch the havoc cross the border and cause any trouble towards the Canal...

Just in from Reuters, Energy Secretary Steven Chu has declined to say if he is worried Egypt protests may disrupt Mid-East oil, but believes that serious disruptions will have oil prices. By harm he means make them surge higher.

Source

Closure of the Suez Canal and SUMED Pipeline would add 6,000 miles of transit around the continent of Africa.
The Suez Canal is located in Egypt, and connects the Red Sea and Gulf of Suez with the Mediterranean Sea, covering 120 miles. Petroleum (both crude oil and refined products) accounted for 16 percent of Suez cargos, measured by cargo tonnage, in 2009. An estimated 1.0 million bbl/d of crude oil and refined petroleum products flowed northbound through the Suez Canal to the Mediterranean Sea in 2009, while 0.8 million bbl/d travelled southbound into the Red Sea. This represents a decline from 2008, when 1.6 million bbl/d of oil transited northbound to Europe and other developed economies.

Source

Folks on Fox News and other stations are claiming that if the Suez canal happens to close, oil will surge.
2-3x as much as it is now....

Closure of the Suez Canal and the Sumed Pipeline would divert tankers around the southern tip of Africa, the Cape of Good Hope, adding 6,000 miles to transit time.

Source
So more travel time = higher costs = higher prices.

What a load of bollocks!
If the disruption that is taking place in Egypt suddenly shifts, we are in for a rude awakening.
Does anyone here realize what $200 oil will equate to?
How about $300 oil?
The shift would be almost over night.

You are talking the biggest leap in prices at the pump in history.

Ever.

By about $8-$10.

I would say to go and fill your tanks up just in case this does take place...
...but either way you will eventually have to pay anyways.

Times like these I wish we had our ENTIRE own supply...but NOOOOOO we have to import 70% of our oil. source
Maybe the POTUS will use our 'reserve' supply...
Keep your hopes up.

reply to post by havok


I don't see how the canal would ever be closed.. unless something happened to it. Even if the Government collapsed, who takes over (and someone always will) will need that canal open as it's one of Egypts few incomes.

But lets assume it does close, oil only accounts for 16% of the canals cargo .. saying oil could double or triple would be based on pure speculation .. they'd be robbing us blind.

Watch George Soro's take down the EU with the help of the CIA working to topple a few countries.
once that Suez Canal closes the price of oil climbs .... and its still traded in us currency.

that would suck! how likley is that to happen?
that would make gas 11 or so a gallon!!! that
would cause riots here for sure,! then it will
the white house burning like that goverment
building on the news rite now.

reply to post by Skydancer


That's the entire problem...

SPECULATORS MAKE THE PRICES

You see, it's not about what it's actually worth, or how much it cost's to make.
The oil market is purely based on speculation...

If the people behind the prices get scared, they could jack it up....
Like they already did today!

OIL IS UP $3.85 TODAY...purely based on scared people...
CNNFN Source


I'm not saying, I'm just saying....




Don't panic..

I filled my tank yesterday - not going to go out unless I absolutely have to -

just in case.

I would hate in all eternity if this actually took place.
It would just further prove, to me, that the price of oil is manipulated in extreme.

Which, in my opinion, is one of the many things we should be paying closer attention to.
The price of oil should not rise or fall because of 'driving' seasons, or holidays...
BUT it does.

I should of wrote a [WRAP] on why I hate oil markets, speculators and OPEC.

Yeah maybe we should drill in the Gulf of Mexico... I heard that there is easy oil to find.

reply to post by Dumbass


Umm...we already do.
That's where we get did get a large amount of oil.
But we put it on the 'market'...to be sold globally.

And then there's the overseas companies who ruined it for everyone else...*ahem....BP.

if you have a full tank then go buy yourself some seeds for planting, a case of toilet paper, a few rolls of duck tape, matches and candles and a bicycle pump.... cause I'm sure the depression is coming sooner than later.

i have access to 2- dirt bikes, 2-four wheelers, 2 boats and one canoe if it really gets bad ... your all welcome to came play in my sandbox. (and one ice fishing hut)

just found an article link from the Drudge Report where it says one of the leaders behind the Egyptian uprising had been trained secretly in the USA to return back to Egypt in late 2008 ... the plan targeted 2011

www.telegraph.co.uk... html

the American Embassy in Cairo helped a young dissident attend a US-sponsored summit for activists in New York, while working to keep his identity secret from Egyptian state police.

On his return to Cairo in December 2008, the activist told US diplomats that an alliance of opposition groups had drawn up a plan to overthrow President Hosni Mubarak and install a democratic government in 2011

reply to post by Rockpuck

But lets assume it does close, oil only accounts for 16% of the canals cargo .. saying oil could double or triple would be based on pure speculation .. they'd be robbing us blind.

Just another excuse to rip us off..
Very little of the world's oil goes through the canal..
It's simple price gouging....

reply to post by havok

Will we see a drastic increase soon? Definitely. The situation in Egypt wasn't but hours old when they were already saying oil was up. These financial pukes driving this need to lighten the hell up. While the rest of the world is worried about the people all these creeps can see is $$$. Sickening.

I'm glad I found this thread I was about to create one on the subject. It sounds like we will be dropping our pants and bending over for the next week or longer and I agree it's the speculators driving up the price with the hysteria. How long has speculating been a factor in markets? I've only become aware of it in the last few years.

It wont go up that much in real terms, cas that is the raw price before tax....
sensational news maybe....
kx

"They" will use any and all excuses to raise gas prices.
Crisis in Egypt?
The Suez Canal?
I stepped on a lego piece my son left out?

Let's charge MORE!!!

States keep months if not a full year of supply at any time, it's too important and strategic to take the risk of running out of oil.
But as havok wrote, speculators make the price. We will be charged. Again !

reply to post by Manouche


and news like this:

Concern appears to be spreading into the world of business. Reuters reports that oil giant Shell is preparing to pull international staff and their families out of Egypt on Sunday.

certainly doesn't help ease the minds of the speculators..

source

reply to post by tribewilder


I was too young to remember but with the oil embargo of the 70's and any other time since then prices have gone up that we would have learned our lesson, not so much us the common folk but to the oil companies and governments. Why must we be constantly held hostage to these situations? I mean it was almost 40 years ago and the technology is available to find other means for transportation other than oil/gasoline. If this is a matter of national security you would think that something would have been done a long time ago.

Closing the Canal could be viewed as an Act of War by any country in the world. It is part of the Treaty that governs it. It must remain open in times of war or peace by any vessel regardless of flag.

If Egypt closes it, they can expect a reaction.