Replies to post #14492 on Zeev's Turnips Patch-No Politics (ZEEV)

[sylvester80]

Let's hope so. I'd like to see some fried bears for a while. lol

[sylvester80]

Crude prices jump on Iraq tension

http://cbs.marketwatch.com/news/story.asp?guid=%7B9B9B5CF7%2D6DD3%2D4FBC%2D8AEC%2D1A72480595A8%7D&am...

Crude prices jump on Iraq tension
Sept. futures contract up $1

By CBS.MarketWatch.com
Last Update: 4:35 PM ET Aug. 12, 2002

NEW YORK (CBS.MW) -- Crude futures rallied Monday on rising Mideast tensions after Iraq rejected U.S. demands for weapons inspections.

The September contract, which was down earlier in the day, rose $1.00 to $27.86 a barrel after Iraq ruled out a return of U.N. inspectors after a four-year hiatus.

"Crude was lower earlier today on the stock market weakness, but the Iraqi news changed the story. It took away the olive branch the Saudis were holding to the U.S.," said Phil Flynn, senior markets analyst at Alaron, referring to Saudi hopes that Iraqi concessions could forestall U.S. action.

"There was also reports that U.S. helicopters were moving to the Persian Gulf. Players now believe an attack could come sooner rather than later."

Over the weekend, Reuters reported that U.S. Congressman David Hobson, chairman of the House of Representatives military construction sub-committee, had visited America's growing military base in Qatar, heightening speculation that a military strike against the oil producer could be imminent.

The U.S. has increasingly grown disenchanted with Saudi Arabia, which opposes the use of U.S. troops for any potential invasion of Iraq. Read full story.

Flynn said that a war premium was being built back into prices. "The war premium was taken out of the market and now it's coming back." The impact of crude disruptions from Iraq on prices will depend on the speed of a strike as well as reaction from other Middle Eastern nations, said Flynn.

Iraq, which has a daily production capacity of 2.3 million barrels, exports about 1.8 million barrels a day under the supervision of the United Nations. The world body has maintained sanctions on Iraq since it invaded Kuwait in 1990.

In the meantime, gold for December delivery fell 20 cents to reach $315.80. The CRB/Bridge Index rallied to 214.55, up 2.73. The index is a broad-based measure of the commodity futures market.

October platinum also continued its run, rising $2.50 to $548 an ounce. September silver, hit hard over the last couple of weeks, edged down 8 cents to $4.59 an ounce.

Among the industrial metals, September copper was essentially flat at 67.85 cents an ounce while September palladium rose $2.40 to $323.50 an ounce.

September natural gas tacked on 20 cents to $2.96 per million British thermal units. But September unleaded gasoline edged up 2.25 cents to 77.75 cents a gallon.

Late last week, the International Energy Agency made revisions to its 2002 global forecast for oil demand, estimating relatively flat growth. The U.N.-affiliated organization also said that world oil production grew by 800,000 barrels a day in July.