Tech & Biz

Higher Oil Prices From Russia, With Love

by BigT | August 21, 2008 at 08:03 pm

202 views | 10 Recommendations | 3 comments

Just when you thought oil prices were going to go down and stay down for a little while a regional flare-up between Russia and Georgia has led to the price per barrel of oil rising about $10.

Oil roared above the $120 a barrel level on Thursday and gold prices jumped amid mounting geopolitical tensions following Russia’s decision to suspend military co-operation activities with Nato in response to a missile shield agreement between the US and Poland.

Nymex October West Texas Intermediate touched a session high of $122.04 before easing back to trade $5.62 higher at $121.18 a barrel while ICE October Brent rose $5.80 to $120.16 a barrel.

Where is oil headed for the rest of the year?

Market speculation has been rampant that Vladimir Putin, Russia’s prime minister, has been infuriated by the US and European response on Georgia and has ordered oil exports to be reduced. The Energy Information Administration repeated on Wednesday its forecast that oil prices would trade in a $120-$130 range for the rest of the year.

Putin and the Russians know that they play a big part in the world's oil supply web. If they threaten war, nuclear war actually, that means the price of oil is going to jump and Russia is going to get a lot more money.

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Paschen

flagged this story as Good Stuff

at 20:29 on August 21st, 2008

Great title BigT.

May i remind you that the only one that have threaten with nuclear war in the past generation where two American Presidents, Reagan and G. W. Bush.

Mikasi

at 01:49 on August 22nd, 2008

When the producer calls the tune the consumer has got to dance.

joellerose

flagged this story as Good Stuff

at 09:21 on August 22nd, 2008

BigT, I like this story. It's good stuff. Although it causes great pain, especially for those heating with oil, hopefully the price increases will keep up the pressure for much more domestic drilling and for the building of nuclear plants.