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Oil Prices Buoyed by Middle East Tensions

General discussions of the systemic, societal and civilisational effects of depletion.

Oil Prices Buoyed by Middle East Tensions

Unread postby AdamB » Wed 18 Oct 2017, 22:19:52


Oil prices traded higher Wednesday, supported by ongoing political tensions in the Middle East. Brent crude, the global benchmark, was up 0.76%, at $58.32 a barrel on London's Intercontinental Exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.31%, at $52.04 a barrel. "There are no prizes for guessing the current buzzword in the energy complex. Geopolitics and specifically geopolitical tensions have returned to the fore after being fanned by unrest in Iraq and rising hostility between the U.S. and Iran," Stephen Brennock, an analyst at brokerage PVM Oil Associates Ltd, wrote in a note Wednesday. Escalating tensions between Iraq's central government and the semi-autonomous Kurdish region have boosted crude prices in recent days, amid concerns the conflict could crimp exports from the area. Kurdistan, which voted almost unanimously to become an independent state in a controversial referendum ..


Oil prices Buoyed by Middle East Tensions
Peak oil in 2020: And here is why: https://www.youtube.com/watch?v=2b3ttqYDwF0
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Re: Oil Prices Buoyed by Middle East Tensions

Unread postby Tanada » Thu 19 Oct 2017, 08:58:07

I will say, I have my doubts. Middle east tensions today don't seem nearly as heightened as they were for the last two years while Iraq has been engaged in fighting ISIS and KSA has been fighting their own neighbors in a petty land dispute. Both of those conflicts are winding down so blaming increasing prices on tensions is just IMO an excuse to ignore the fact that the glut is rapidly abating as demand has caught up with production.
I should be able to change a diaper, plan an invasion, butcher a hog, design a building, write, balance accounts, build a wall, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, pitch manure, program a computer, cook, fight efficiently, die gallantly. Specialization is for insects.
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Re: Oil Prices Buoyed by Middle East Tensions

Unread postby Outcast_Searcher » Thu 19 Oct 2017, 10:07:51

Tanada wrote:I will say, I have my doubts. Middle east tensions today don't seem nearly as heightened as they were for the last two years while Iraq has been engaged in fighting ISIS and KSA has been fighting their own neighbors in a petty land dispute. Both of those conflicts are winding down so blaming increasing prices on tensions is just IMO an excuse to ignore the fact that the glut is rapidly abating as demand has caught up with production.

Since markets try to look ahead, this seems right. WTI seems to be doing just fine holding above $50, despite some of the ETPers on this site predicting it would immnently correct back to the $40 to $45 area in the past couple/few weeks.

I think many financial reporters feel a need to say WHY the markets are moving on a given day. Since they don't know any better than the rest of us, they cite the opinion of 1 or a handful of market pundits -- who likely don't know any better either.

IMO automated reporting of things like market prices may well be better than when human reporters do it. Human reporters can then try to focus on more meaningful, more in depth and longer term financial reporting on (hopefully) meaningful related news.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.
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