Deconstructing the Oil Crunch | Newsweek Environment

Oil Trouble

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So what are the markets worried about, if not a conflict?
If oil supplies in the Mideast were to be negatively affected—if the Straits of Hormuz were to be cut off even for a short period of time … that's a central concern of the market.

So if the United States and other countries were to impose strict sanctions or an embargo of some sort on Iran, then Iran might respond by cutting off the Straits of Hormuz? Something of that nature?
Yes, that's the deep fear in the oil market. [Iran] couldn't shut off oil exports for very long, but even shutting them off for a short time would lead to fear and anxiety sweeping over the oil market to a degree we haven't seen before.

What would you project for oil prices if that were to happen?
Fear and emotion would take over. Prices could go far higher than they are now—if that were to happen.

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The USA is the World's 3rd largest oil producer. Texas alone, if a country would be the World's 5th largest oil producer. The USA has the talent and ability to get a 30% cleaner burn AND defray another 30% oil equivalence to OTHER types of energy efficiencies and SOURCE products for such....almost over night IF? they really wanted to. It's easier not to though. Keep in mind 60 some years ago the same country developed the A Bomb in just barely over a 1 year time frame ( if that's not remarkable energy conversion..then what is?). The track the USA is on will take crude to $250 within 3 years. The more bought with USA currency now....the higher oil gets and the more worthless said currency becomes on a daily basis. There will be an opportunity in 08 to actually index a barrel of oil to 4 bushels of wheat which would be a salvation type deal for the USA currency/oil situation at this time. Furthermore it would also help the whole global USA currency imbalance long term. Doubtfull though that dc and the corp club thereof will see it or be able to figure out how to play it either. Everyone has to get postured so about 5 of em glean the whole deal. Posturing takes time...and that's how the country got into this mess to start with, to much posturing, and so few REAL players.

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Posted By: alxe123 @ 08/09/2008 8:17:35 PM

It is time for our government to meet with other world leaders, both suppliers and consumers, to invoke the Rimini and Uppsala protocol.
Call your congressman today!
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Posted By: mullenhead @ 03/14/2008 4:40:53 PM

This comment is just scary on so many levels.
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Posted By: Markwri @ 01/06/2008 4:03:18 AM

The USA is the World's 3rd largest oil producer. Texas alone, if a country would be the World's 5th largest oil producer. The USA has the talent and ability to get a 30% cleaner burn AND defray another 30% oil equivalence to OTHER types of energy efficiencies and SOURCE products for such....almost over night IF? they really wanted to. It's easier not to though. Keep in mind 60 some years ago the same country developed the A Bomb in just barely over a 1 year time frame ( if that's not remarkable energy conversion..then what is?). The track the USA is on will take crude to $250 within 3 years. The more bought with USA currency now....the higher oil gets and the more worthless said currency becomes on a daily basis. There will be an opportunity in 08 to actually index a barrel of oil to 4 bushels of wheat which would be a salvation type deal for the USA currency/oil situation at this time. Furthermore it would also help the whole global USA currency imbalance long term. Doubtfull though that dc and the corp club thereof will see it or be able to figure out how to play it either. Everyone has to get postured so about 5 of em glean the whole deal. Posturing takes time...and that's how the country got into this mess to start with, to much posturing, and so few REAL players.