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Posts Tagged ‘Kuwait’

Will $200 oil kill the economy?

March 2, 2011 Comments off

money.msn.com

Unrest in key oil-producing nations opens the door to price spikes that could push gas to $7 a gallon and spin the world back into recession. Here’s how we’d get there, and how to protect your portfolio.

Image: Oil drums © Kevin Phillips, Digital Vision, age fotostock


Are your pocketbook and portfolio ready for $200-a-barrel oil?

This kind of dramatic price spike may seem less likely now than a few days ago, with oil markets calming down a bit and the price slipping below $100. But given the instability and unrest rolling through the Middle East and North Africa, it’s a definitely a viable scenario.

For the moment, most oil sector analysts have gone off high alert because of a Saudi Arabian pledge to increase production to make up for any shortfalls sparked by unrest. But that ignores a key angle in all this: There’s simply not enough spare capacity to make up for the production losses we’d see if the rolling crises in the region hit just two or three major producers at once.

This could easily happen, given the heightened Read more…

VERY INTERESTING” LEAK”- Resurfaced-The Map of the “New Middle East”

March 1, 2011 Comments off

patriotfreedom.org

The Map of the “New Middle East”
by Mahdi Darius Nazemroaya
A relatively unknown map of the Middle East, NATO-garrisoned Afghanistan, and Pakistan has been circulating around strategic, governmental, NATO, policy and military circles since mid-2006. It has been causally allowed to surface in public, maybe in an attempt to build consensus and to slowly prepare the general public for possible, maybe even cataclysmic, changes in the Middle East. This is a map of a redrawn and restructured Middle East identified as the “New Middle East.”
MAP OF THE NEW MIDDLE EAST

“Hegemony is as old as Mankind…” -Zbigniew Brzezinski, former U.S. National Security Advisor
The term “New Middle East” was introduced to the world in June 2006 in Tel Aviv by U.S. Secretary of State Condoleezza Rice (who was credited by the Western media for coining the term) in replacement of the older and more imposing term, the “Greater Middle East.”

This shift in foreign policy phraseology coincided with the inauguration Read more…

Graph of the Amount of Oil Production Affected by Crisis

February 27, 2011 Comments off

Although Obama might not view what is happening in the Middle East as all that important- he is going to basketball games and concerts and instead directing attempts to riot in WI- I think it is very important because the Middle East region sits on a very important resource- oil. So for fun, I put together a graph this morning to demonstrate the amount of oil production that is affected by the crisis in the Middle East. The graph shows oil production by country based on the most recent data I found in the CIA World Factbook, and shows each nation currently in crisis or about to be in crisis, and then the gray area represents all other nations not currently affected.

Any change in oil production likely will cause the price of gasoline to go up, and as you can see, a large percentage of the world’s oil comes out of this affected region, although if Saudi Arabia stays stable, then the percentages is considerably less although still significant. In my amateur opinion, gas prices are going to rise, the economy will dip again, and Obama will react to this all by supporting our enemies and lowering our oil output. Here is the graph:

If Libyan unrest spreads, gas could reach $5

February 22, 2011 Comments off

Gary Strauss on Feb. 21, 2011 USA Today News

If political unrest in Libya spreads to other oil-rich countries and the ensuing chaos disrupts crude oil production, gas prices could hit $5 a gallon by peak summer driving season, industry analysts say.

Benchmark crude oil prices soared Monday, rising about 6% to $95.39 a barrel for April contracts on the New York Mercantile Exchange as violence and a military crackdown spread in Libya, the first major oil-producer hit by a burgeoning anti-government movement. The increased violence prompted BP and Norway’s Statoil to pull oil workers from the besieged country.

“If this thing escalates and there’s a good chance that there’d be a shift in supplies, $5 gas isn’t out of the question,” says Darin Newsom, senior analyst at Read more…

Riots Break Out in Bahrain

February 15, 2011 2 comments
Bloomberg
By Glen Carey – Mon Feb 14 15:04:21 GMT 2011
Bahrain Deploys Police as Demonstrators Demand Freedom, Jobs

Police fired tear gas into a crowd of protesters in the Diraz area today. Photographer: -/AFP/Getty Images

Bahraini riot police were deployed to break up protests across the island nation as demonstrators, inspired by revolts in Egypt and Tunisia, demanded more political freedom and jobs.

Police fired tear gas into crowds in the areas of Diraz and Bani Jamrah. Earlier, residents of the Shiite Muslim village of Nuweidrat said clashes broke out between activists and police after morning prayers. Police were present on the outskirts of Nuweidrat, where Shiite flags adorned buildings along alleyways.

”We were starting our peaceful protests when riot police attacked us with tear gas,” Nabeel Rajab, head of the Bahrain Center for Human Rights, said in an interview after the protest in Bani Jamrah was dispersed. “We will continue Read more…

Oil Prices: Egypt’s Crisis Could Hurt Europe First

February 1, 2011 Comments off

CHARLES WALLACE

Some crude oil prices brushed $100 a barrel Monday as fears escalated that the violence in Egypt would spread to other parts of the oil-producing Middle East. But so far, no reports have surfaced that the disturbances in Egypt have disrupted oil deliveries.

Brent crude oil surged to $99.97 a barrel on London’s ICE futures exchange, up about 5% since the beginning of last week, when violence spread from Tunisia to Egypt. In U.S. trading, West Texas Intermediate shot up 1.7% on Monday, but was still about $10 a barrel cheaper than Brent crude, its European counterpart.

Julius Walker, a senior analyst at the International Energy Agency in Paris, says the organization has received no reports that oil shipments were being delayed, but the website of the agency that runs the Suez Canal has been shut down by the ban on Internet use in Egypt, so a precise reading isn’t available.

“Nothing has been affected. It’s just the worry of it,” Walker says.

A Chokepoint for Europe-Bound Oil

Egypt is a small oil producer, and its output is almost exactly equal to Read more…