Crude Oil Soars to Highest Level Since Before Attack on Iraq

[Purveyor]

Nov. 18 (Bloomberg) -- Crude oil rose to the highest level since before the U.S. invasion of Iraq in March on signs that inventory gains will be limited.

Oil supplies are ``too low'' and may not be able to meet increased demand in the event of a colder-than-normal winter, said Claude Mandil, the International Energy Agency's executive director. OPEC agreed to cut output by 900,000 barrels a day starting Nov. 1. Terrorist attacks in the Middle East have led to speculation that shipments may be threatened.

<snip>

Prices have also increased on concern that unrest in Saudi Arabia and Iraq will limit shipments from the two nations. Saudi Arabia is the biggest oil exporter and holds the world's largest proven oil reserves. Iraq, the Middle East's third-largest oil producer before the war to oust President Saddam Hussein, holds the second-biggest proven reserves.


http://quote.bloomberg.com/apps/news?pid=10000006&sid=a227oZUibvhw&refer=home">Link for full Bloomberg article

[BeHereNow]

1. I repeat:

Canadian Oil Sands Trust...

[rapier]

2. Is this a no sequitur

Anyway................Could begin to provide significant oil to the market in a decade, maybe. At some price way above $30, probably. Along with it a big environmental cost, for sure.

and Yes, we have no inflation.

[Code_Name_D]

3. More like market manipulation.

Oil rising today becase it COULD be in short supply? Niee excuse to gouge if you ask me.

[rapier]

4. notes

All commodities are strong now. Well most are. Oil stocks are low. That isn't really new or news. However the low stocks make oil more subject to quick rallies.

OPEC is being agressive in trying to hold down production. China's use is surging.

For the speculative hot money now flowing into commodities these stories, and others, like the worry about Saudi oil being vulnerable only are excuses to get into oil. The stories are valid but prices always rise on liquidity. Money flows into something and prices rise.

That is the story of stocks for 20 years. There never was a real fundamental reason for stocks to go so abusrdly high. The whole new era thing was just a story to bring in the suckers. That is how markets work.

Stocks are a bit different than commodites I admit. Nobody needs stocks. People need wheat and oil. There can never be a shortage of stocks like there is of oil. However the dynamics are the same.