Oil surges after Iran uranium warning

[FarCenter]

Oil prices surged on Friday as the UN’s nuclear watchdog said Iran had significantly increased its production of higher-grade uranium over the past six months and had failed to dispel concerns that it was pursuing atomic weapons.

Amid growing fears that Iran’s nuclear programme could prompt a military attack by Israel later this year, the International Atomic Energy Agency produced a detailed report into the state of Tehran’s nuclear programme which suggested it has ramped up the production of uranium close to weapons grade.

Oil prices rose sharply, with Brent crude, the global benchmark, hitting a fresh nine-month high of $125 a barrel. Prices have risen 15 per cent in the past month against the backdrop of growing tensions with Iran and supply disruptions in other, smaller producers such as Sudan, Syria and Yemen.

http://www.ft.com/intl/cms/s/0/f75485ba-5f09-11e1-9df6-00144feabdc0.html

[teddy51]

1. "suggested it has ramped up the production of uranium close to weapons grade." I just love

the way they play with words on this whole thing. Nobody really knows what Iran is up to, other than Iran. The Israeli's are chomping at the bit to attack this country, with no regard to what the final outcome may be.

[seeviewonder]

3. Unfortunately, we know that if Israel attacks Iran

and gets in over their head they will come running to us. Kinda like they just metaphorically kicked the hornets nest. I don't think Obama would stop us from getting involved if that happens. I will vote for him again in November, and I should give him the benefit of the doubt, but I don't have enough faith in him to keep us away from intervention in Iran.

[teddy51]

4. We think alike, and Hillary to me is a major warmonger. I really hope that Israel is smarter than

attacking Iran this time around, because it very well may lead to something that they really did not intend to happen. None of us know where China, Russia, Pakistan, and others stand on this. NATO is in over there heads at this point, with what is going on in Syria. A hit on Iran right now, could be the straw.

[seeviewonder]

5. I have a hunch that China and Russia

will side with Iran on this one. They are against any action against Assad and I think that can be extended to action against Iran.

[teddy51]

6. Once again, we think alike. This will not be pretty if Israel does attack Iran. n/t

[bhikkhu]

2. That sounds pretty dysfunctional

...as one can understand a run-up based on, say, if you are an airline totally dependent on fuel supplies, then it would be worthwhile to lock in a supply at a high price against the risk of shortage. Or any number of other industries could bid-up future supplies if things looked questionable. But, then again, the bet is that if bad things happen you will still need fuel at a high price and you will have customers for the resulting high-priced goods...where in reality high prices cause general recession, which causes low prices and low demand for all sorts of products.

One would think that the willingness to run up the price in the face of risk should be tempered by the realization of the low-demand economy that would result from the actualization of the feared event, or simply of the low-demand economy created by the running up of the price itself, eventually.

[Owlet]

7. If you want to track the price of oil

here's a good site. It even has widgets you can add to your own blog or website. Can't make them active here (not allowed to post code) but here's what they look like.





http://oil-price.net/