According to Yahoo!News:
MANAMA, Bahrain – Two U.S. Navy vessels — a nuclear-powered submarine and an amphibious ship — collided before dawn Friday in the mouth of the Persian Gulf, one of the world’s most important sea passages for oil supplies.
There was no damage to the sub’s nuclear propulsion system and no disruption to shipping in the strategic Strait of Hormuz, through which a fifth of the world’s oil passes, said Navy spokesman Lt. Nate Christensen, with the Bahrain-based 5th Fleet.
Still, the unusual collision between members of the same navy sparked a sudden rise in oil prices — which had been declining on the day — even though the strait remained open.
Benchmark crude for April delivery had traded lower for most of the morning, but then erased those losses and rose 39 cents to $52 on the New York Mercantile Exchange. In London, Brent prices rose 50 cents to $51.17 on the ICE Futures exchange.
Still, with pressure pulling prices down in the financial crisis, the rise was nowhere near what would have been expected months ago, when such a collision would likely have sent prices skyrocketing.
Read the full article at Yahoo!News:
- Now we think we know what had caused the oil price to rise in the past week but is it really the full truth?
We know Strait Of Hormuz is the most important narrow strait in the the whole world because it is the route of estimated 40% of the world oil supply must go through it, IRAN happen to occupy the border of this strait making Iran holding a strategic strong hold in the oil market.
This event demonstrated that the oil price may be affected by any incident that happened in or near the strait of Hormuz even if it did not cause any disruption such as this case.
Speculative rumors spreads like wild fire now that this incident may be “not serious” or “very serious” while Obama suddenly offer a “surprise new beginning” with Iran while some says Obama thinks that the Iran clock is ticking…just a matter of how fast.
Strait of Hormuz is one tensed location where US Naval patrols the area pretty tightly, any mishaps may cause disruption to estimated 40% of the world oil supply that possible set the domino of disasters one after another into another vicious loop.
Oil Spike -> Economy Crisis -> Oil Collapse -> Tension & Disruption & Oil Project Ceased/Bankruptcy of non-conventional oil companies –> Oil Spike…(Repeat).
The prediction for the following week may be unpredictable and wild…USD is on the verge of collapsing causing oil prices to goes up suddenly but any serious economic disasters
Conclusion is, the current collision may be “small incident” and oil may oil drom
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