World can't afford to lose Iran's oil: US EIA chief

Even though the United States does not directly import Iranian crude, Caruso said a cutoff of Iran's oil would affect the U.S. market because other countries that buy Iranian crude would compete with America to find new supplies.

Source: Reuters

Two pretty big events going on

Number One being the Nigeria situation
ATS: Armed Militants Storm US Oil Platforms In Nigeria

Nigeria exports 2.5 million barrels a day. Thus far, over 220,000 barrels a day have been cut due to evacuations and attacks, and the militants continue to threaten the supplies if their demands are not met.

Oil is near $67 a barrel today, a level not seen since around the time Hurricane Rita set sights on the Gulf of Mexico.

Iran threatens the west with higher oil prices. They currently produce approximately 4.1 mbpd. Though the US doesnt receive any oil from Iran, China receives somewhere around 12% of its oil from Iran. China is, of course, against UN Sanctions, and so is Russia. IMO, it would be stupid for Iran to cut any of its supplies to China since it would hurt China, a business ally, more than the US, but Iran has warned of higher prices. (less output)

Around christmas time oil was in the $56 - $58 range. As of posting it's now $66.70.

The Nigeria thing is definitely having effect on the market. Speculators are also preparing for an Iran problem, but how much has Iran been responsible for, since it's all just talk and no actions have been taken, yet.

Good news is, its a geopolitical event and oil will soon start tumbling down.

[edit on 17-1-2006 by Thatoneguy]

I think that having oil at 100 dollars will be a good thing because I see so many arsehole drivers out there that it's not even funny. It will smarten North America up big time. Healthy reality check.

It would be a reality check I'm personally willing to see.

We here in North America deserve another stock market crash. In the 75 years or so since the last one we have become incredibly stupid and ignorant people and devoid of any feelings toward other people what so ever.

Our whole way of life is me me me and I Me Mine.

North America deserves another stock market crash. Maybe then all the Bush supports will see that the Oil Companies will be racking it in by the Trillions. Then they would begin to question the morality of the Bush administration.

By then though it will be too late.

Hello friends:

I don't see what the big deal is with the oil, the
internal combustion engine has been obsolite over 60 yrs
now. The big companies are the one puting a hold on the
oil because they will losse millions of dollar if we go on another
way to move around like gas operated cars