Oil price rises along with Middle East tensions

[webfact]

Oil Rises along with Middle East Tensions
BY JACOB MASLOW

LONDON: -- The price of oil saw an uptick of around 2% on Monday morning as tensions flared between Iran and Saudi Arabia.

The two nations severed diplomatic ties and engaged in aggressive posturing after Iranian cleric Sheikh Nimr al-Nimr was executed by Saudi Arabia this week. Protests led to chaos as the Saudi embassy in Tehran was stormed and set on fire. Saudi responded by announcing that all Iranian diplomatic personnel had 48 hours to leave Saudi Arabia.

Al-Nimr was executed along with 46 others in the largest mass execution conducted in Saudi Arabia in over 30 years.

Iran’s supreme leader, Ayatollah Khameni, warned Saudi Arabia it would encounter “divine revenge” over the execution.

Global oil index BRENT climbed over $1 Monday morning, up over 2%, while WTI futures were up 2.5% or 76 cents per barrel.

Full story: http://www.streetwisejournal.com/oil-rises-along-with-middle-east-tensions/


-- StreetWiseJournal 2016-01-04

[BigBadGeordie]

And this afternoon BRENT fell 1,8%, from opening price.

[ezzra]

Which come to show that oil pricing is one big BS, as it has nothing to do with the economy of the world or how scares it is to find it, the oil pricing is the biggest con and bilking system perpetuated by OPEC and other suppliers.....

[Seastallion]

So, did the execution of the Shia cleric have anything to do with anticipating a rise in prices? What other reason for deliberately stoking unrest?

[bangkokheat]

So, did the execution of the Shia cleric have anything to do with anticipating a rise in prices? What other reason for deliberately stoking unrest?

these players are the best paid sportsmen at everyone else expense

[canman]

Which come to show that oil pricing is one big BS, as it has nothing to do with the economy of the world or how scares it is to find it, the oil pricing is the biggest con and bilking system perpetuated by OPEC and other suppliers.....

The 'oil price' is set buy traders and speculators. Neither OPEC or any oil company sets the price for a barrel of crude. OPEC can influence the price by increasing or reducing production but it is still the traders who set the price.

[soistalker]

You don't know what you are talking about. OPEC's manipulation of supply and demand is how price is originally determined. Second is external factors to include war, force majeure, refineries' mix of byproducts, etc.

Speculation is a distant third.

What are you, one of the hunt brothers?

Which come to show that oil pricing is one big BS, as it has nothing to do with the economy of the world or how scares it is to find it, the oil pricing is the biggest con and bilking system perpetuated by OPEC and other suppliers.....

The 'oil price' is set buy traders and speculators. Neither OPEC or any oil company sets the price for a barrel of crude. OPEC can influence the price by increasing or reducing production but it is still the traders who set the price.

[meatboy]

oil prices UP,so that means transporting goods to supermarkets will see prices of goods going UP.

hang on a minute taff fuel is at its cheapest for 10yrs? but did anything come down.that includes taxi fares,tuk tuks,bus fares and airline tickets.

DONT KNOW.

[canman]

You don't know what you are talking about. OPEC's manipulation of supply and demand is how price is originally determined. Second is external factors to include war, force majeure, refineries' mix of byproducts, etc.

Speculation is a distant third.

What are you, one of the hunt brothers?

Which come to show that oil pricing is one big BS, as it has nothing to do with the economy of the world or how scares it is to find it, the oil pricing is the biggest con and bilking system perpetuated by OPEC and other suppliers.....

The 'oil price' is set buy traders and speculators. Neither OPEC or any oil company sets the price for a barrel of crude. OPEC can influence the price by increasing or reducing production but it is still the traders who set the price.

So the jump up 2% and then back down 2% yesterday was OPEC or traders?

[sirineou]

Which come to show that oil pricing is one big BS, as it has nothing to do with the economy of the world or how scares it is to find it, the oil pricing is the biggest con and bilking system perpetuated by OPEC and other suppliers.....

It has everything to do with supply and demand.

-slow world economic conditions have reduced demand, creating a glut in supply.

-efficiency in production has reduced operating costs

-limited Storage capacity promotes dumping

- US lifts export ban

-Prospect of Iran entering the market

-Lower price of oil reduces revenue of Oil producing Nations, forcing them to increase supply to maintain level of revenue

etc etc

All supply and demand issues. No surprise when a conflict between to Oil producing nations, threatens to reduce supply, price rise, as situation stabilizes price fall.