Unforeseen events playing havoc with oil prices

[cynatnite]

WASHINGTON - When a tropical depression in the Caribbean was upgraded to Tropical Storm Dennis this week, crude oil prices immediately began climbing on the New York Mercantile Exchange.

Traders feared that at least one of the four tropical depressions off the U.S. Atlantic and Gulf coasts could become a hurricane that would delay oil deliveries, damage offshore oil rigs and threaten onshore refineries. That means temporary oil shortages are possible, a fear that drives up fuel prices.

http://news.yahoo.com/s/krwashbureau/20050706/ts_krwashbureau/_bc_oilprices_wa_1

[CC]

1. Unforeseen?

Like they never have hurricanes in the Caribbean. We all know they happen every year about this time...usually from June 1 to Nov 1. Just another excuse to make more billions for the oil barons.

[Robbien]

2. Just goes to show how tight supplies are. No wiggle room

Its the stormy season. Happens every year, but now a usual weather event has a huge effect on price speculation.

[cynatnite]

4. It made me think of 'Oil Storm' by F/X

It's a docudrama of sorts that gives a whatif situation in pushing the gas prices to 8 or 9 bucks a gallon.

Now I wonder if they watched it. :tinfoilhat:

[Porcupine]

3. "Peak Oil" was forseen many years ago.

Along with market volatility and price fluctuations connected to extremely tight supply/demand relationships.

[dkf]

5. Especially if we go to war with Iran...

http://www.bloomberg.com/apps/news?pid=10000082&sid=aDubtdLe8SIQ

Oil has surged partly on concern that a dispute over Iran's nuclear program to generate electricity may lead to conflict with the U.S. and disrupt supplies from the Middle East. The cushion between output capacity and demand is narrowing as producers including most OPEC members pump at maximum.
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``A surprise in the oil market would be if the U.S. attacks Iran,'' Sheikh Zaki Yamani said at the conference of the Centre for Global Energy Studies, which he founded and chairs. ``Prices would shoot up, and then forget about $60'' a barrel, he said.

Iran, OPEC's second-biggest oil producer after Saudi Arabia, pumped about 3.9 million barrels of crude oil a day in May, according to Bloomberg estimates. Saudi Arabia's output was 9.5 million barrels a day in the period.

[Melynn]

6. Can't you see the Freepers saying

"We only have to invade one more Middle Eastern country to get cheap oil."

Anyone who knows any Repugs, asked them where is the cheap oil from Iraq? They thought gas prices were going to go down when the U.S. invaded Iraq.