Oil jumps as an attack on an Iraqi pipeline slows exports - USA Today

[JohnWxy]

http://www.usatoday.com/money/industries/energy/2008-03-27-oil-gyrates-thur_N.htm?loc=interstitialskip



NEW YORK — Oil futures shot back above $107 a barrel Thursday after the bombing of an Iraqi oil pipeline diverted investors' attention away from a stabilizing U.S. dollar.
Retail gas prices, meanwhile, inched up overnight while diesel prices slipped.

The bombing of a key Iraqi oil pipeline Thursday morning appeared to cut oil exports from the southern oil city of Basra, despite oil officials' statements to the contrary. Dow Jones Newswires reported that exports from southern Iraqi terminals have been cut to about 1.2 million barrels a day from a normal rate of 1.56 million barrels a day.

"We're going to be getting less oil because of the explosion," said James Cordier, founder of OptionSellers.com, a Tampa trading firm.

[TomInTib]

1. "despite oil officials' statements to the contrary"

Yeah, right.

There they go, creating their own reality again.

[DJ13]

2. "We're going to be getting less oil because of the explosion,"

"5 gallons, 5,000,000 barrels, it makes no difference to us, we can still push the price higher by using this excuse"

[loveable liberal]

3. "Gas Prices Rise with the Sun"

OPEC has announced that oil prices will vary wildly at their whim a spokesman has announced. Sometimes we raise the price per barrel because the sun came up, sometimes we lower the price because as a group we have enjoyed mint jelly with breakfast.

"The group really likes mint jelly" said group spokesman Omar Sharif.

The five top reasons for raising the price of a barrel of oil are as follows:

1. Son of Sheik insists on wearing tattered blue shirt with green jeans.
2. Another re-run of "The Office".
3. Tom Cruise makes a headline.
4. Sun irritated group as it came up in the morning and hurt eyes during drive to work.
5. Ran out of mint jelly.

[cliss]

4. The key word here is

"Basra" that's where all the fighting is going on.

This is the Achilles' Heel of Iraq.
Watch for the situation to deteriorate in the next few days.

The Iraqis aren't stupid. They know that this port (there aren't very many in Iraq) is probably the most vulnerable part of that country. Much more vulnerable than even Baghdad.