SINGAPORE – Oil rose on Tuesday after slipping from a record above $143 a day ago, as tension surrounding Iran’s nuclear program returned to focus and outweighed concerns over eroding U.S. demand.
U.S. crude rose 39 cents to $140.39 a barrel by 0201 GMT, while London Brent crude rose 76 cents to $140.59.
Fears of oil supply and flow disruption in the Middle East, as the Iran-Israel row over Tehran’s nuclear developments escalates, had helped pushed oil to a $143.67 peak on Monday.
“The market has been worried about the tensions involving Iran and that remains a supportive factor for the oil price,” said David Moore, a commodities analyst at the Commonwealth Bank of Australia in Sydney.
In a war of words between the Iranian and U.S. military, Iran’s Revolutionary Guard said Tehran would impose controls on shipping in the Middle East Gulf and Strait of Hormuz if it were attacked.
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- This is another news that reports on the tensions between Iran and U.S. military, oil prices dropped a little before resuming it’s upwards climb from $140 to $141.20 (now) where the record reached over $143 just a day ago. If the escalation goes into all out conflict, our worst fear will be realized…and things can spiral into chaos rather quickly. Just get ready for anything, from economic downturn…food shortages…fuel shortages….to hyper-inflation. Anyone fancy a $10 happy kids MacDonald meal anyone??
I really doubt the politicians can do anything about energy depletion other then investing heavily in affected commodities and wish that the fossil fuel will appear magically to sustain the world’s demand.
Investing more MONEY DOES NOT EQUAL Availability, it will take a serious sudden supply disruption to teach the economist and investors alike to think of alternative instead of just investing.
It will take time and more money to discover more oil, to drill new oil wells…it takes huge energy to extract oil form oil shale (rocks) and oil sands. Production at oil sands cannot ram up speed overnight, it will take massive amount of personnel and machinery to work simultaneously 24/7 to bring more oil out of oil sands.
Deep sea oil rigs are venerable to accidents and attack from militants (especially in Nigeria) and it’s very expensive to operate as well.
Discovery of mega oil fields had almost dropped to negligible despite the use of modern technology, opening up new nature reserve for exploration does not necessary means it can discover more oil…it’s all up to chances (like gambling). Even if you found an oil field, the size may not be as big as the past mega oil fields and cannot sustain even the depletion rate of the world mature oil fields not forgetting the global increasing demand for oil due to population and economy growth of the world. (Not to pin-point any country in particular)
Alternative must be found and it should not be disruptive to the food supply as well as we do not want to drive cars with our stomach empty or having wars due to food shortages.
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