[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help] 

Status: Not Logged In; Sign In

Cash Jordan: ICE Raids Home Depot... as California Collapses

Silver Is Finally Soaring: Here's Why

New 4um Interface Coming Soon

Attack of the Dead-2025.

Canada strips Jewish National Fund of charitable status

Minnesota State Rep. Vang just admitted that she is an ILLEGAL ALIEN.

1100% increase in neurological events since the roll-out of Covid mRNA

16 Things That Everyone Needs To Know About Violent Far-Left Revolution In Los Angeles

Undercover video in Arizona alleges ongoing consumer fraud by Fairlife

Dozens arrested after San Francisco protest turns violent Sunday

Looking for the toughest badasses in the city (Los Angeles)

Democrat Civil War Explodes: DNC Chair Threatens to Quit Over David Hogg

Invaders waving Mexican flags, pour onto the 101 Freeway in Los Angeles

Australian Fake News Journo Hit By Rubber Bullet In L.A. Riot

22-year-old dies after being unable to afford asthma inhaler

North Korean Bulsae-4 Long-Range ATGM Spotted Again In Russian Operation Zone

Alexander Dugin: A real Maidan has begun in Los Angeles

State Department Weighing $500 Million Grant to Controversial Gaza Aid Group: Report

LA Mayor Karen Bass ordered LAPD to stand down, blocked aid to federal officers during riots.

Russia Has a Titanium Submarine That Can ‘Deep Dive’ 19,700 Feet

Shocking scene as DC preps for Tr*mp's military birthday parade.

Earth is being Pulled Apart by Crazy Space Weather! Volcanoes go NUTS as Plasma RUNS OUT

Gavin, feel free to use this as a campaign ad in 2028.

US To Formalize Military Presence in Syria in Deal With al-Qaeda-Linked Govt

GOP Rep Introduces Resolution Labeling Free Palestine Slogan as Anti-Semitism

Two-thirds of troops who left the military in 2023 were at risk for mental health conditions

UK and France abandon plans to recognise Palestinian state at conference

Kamala Backs LA Protests After Rioters Attack Federal Officers

Netanyahu's ultra-Orthodox partners move ahead with Knesset dissolution plan

Former Prime Minister of Ukraine: Zelensky will leave the country


Business/Finance
See other Business/Finance Articles

Title: Saudi Arabia Uprising Could Mean $140-Plus Oil
Source: [None]
URL Source: [None]
Published: Feb 23, 2011
Author: By: John Melloy
Post Date: 2011-02-23 13:38:07 by HAPPY2BME-4UM
Keywords: None
Views: 239
Comments: 2

Saudi Arabia Uprising Could Mean $140-Plus Oil

The events unfolding in Libya mark the first uprising in a major oil producing country this year, giving energy traders their first indication of where crude could climb if Mideast turmoil were to spread to Saudi Arabia or Iran.

LIGHT CRUDE APR1
(CLCV1)
99.60 4.18 (+4.38%%)
New York Mercantile Exchange

“Pricing in Libya supply disruptions is one thing, but what if this social unrest spreads to Saudi Arabia, which holds 20 percent of the world’s oil?” said David Rosenberg, chief economist and strategist for Gluskin Sheff. “Do the math: we’d be talking about $200 oil.”

Without taking into account the collateral effects of such a strategic part of the Middle East falling under siege by its own people, a simple production comparison gets the price to at least $140 a barrel.

West Texas crude oil for April delivery, the benchmark for the U.S., rose as much as $8.44 a barrel in trading today to $98.48 on Libyan Leader Muammar Gaddafi’s defiance in the face of the uprising.

LIGHT CRUDE APR1
Saudi Arabia produced 9.8 million barrels a day of crude oil in 2009, 5.4 times more than Libya, according to the U.S. Energy Information Administration. Multiplying $8.44 by 5.4 equals a $45.95 jump in the price of crude.

“Oil would go parabolic,” said Joe Terranova, chief market strategist for Virtus Investment Partners and former energy trader. “The Shiite population (compared to the Sunni ruling family) is more concentrated in the oil producing region. The workers could strike.”

Technical analysts studying the charts see a steady trend upward right now, potentially to the 2008 high above $140. A successful breakout at about $140 gets you to Rosenberg’s $200 next, they said.

Prince Abdulaziz bin Salman Al Saud, Saudi Arabia’s Deputy Oil Minister, said that the country could unleash a large amount of supply to relieve any spike in price. His comments Tuesday sent oil off its high for the day. Still, the seeds of the current Middle East revolution remain present in his country: unemployment and a youthful population.

“With 20 percent of the world’s oil reserves, Saudi Arabia would clearly have a much greater affect on oil prices,” said Jim Iuorio, managing director for TJM Institutional Services. “However, I have a difficult time believing that the U.S. government would let the country fall into the hands of a different government. Make no mistake, Saudi Arabia is not Egypt or Libya and the U.S. would be quick to aid.”
Beyond the money

One matter that could keep oil in check even if Saudi Arabia’s current ruling party fell is the demand side of the equation. When oil hit $147 a barrel in 2008, total petroleum consumption in the United States fell below 20 million barrels a day for the first time in six years, according to EIA data.

“If Saudi Arabia goes and oil is disrupted, we would have a strong run-up in price with an extreme above $150, but that would also crush demand,” said Andrew Busch of BMO Capital Markets. “Remember when oil was last at $140 (a barrel), Americans reacted and cut the amount of miles they drove.”

Still, oil was rising for different reasons back then as producing countries still had a solid hold on their supplies. A spreading revolution in the Middle East is a much more permanent change in the global energy markets than the crowded hedge fund trade it became back then.

(1 image)

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

#1. To: All (#0) (Edited)

.

U.S. Constitution - Article IV, Section 4: NO BORDERS + NO LAWS = NO COUNTRY

HAPPY2BME-4UM  posted on  2011-02-23   14:32:50 ET  Reply   Trace   Private Reply  


#2. To: HAPPY2BME-4UM (#1)

King Abdullah just got back from abroad after several weeks of medical treatment, and announced $37 billion in increased unemployment, educational benefits and social security payments.

Unlike in Egypt and Bahrain, in Saudi the royals have a cushion and can open the spigot a mite to keep them down on the farm at home. The locals will kick back as long as they get they check, you know.

We'll see how this pans out.

It is a violation of Natural Law to use this document in a manner inconsistent with its labeling.

randge  posted on  2011-02-23   14:55:42 ET  Reply   Trace   Private Reply  


TopPage UpFull ThreadPage DownBottom/Latest


[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help]