Crude Oil Rises After Israeli Attacks on Gaza Roil Middle East

Grant Smith
Bloomberg
Monday, Dec 29, 2008

Crude oil rose for a second day after Israeli air strikes in the Gaza strip raised concerns that supply from the Middle East, the world’s largest producing region, may be disrupted.

Defense Minister Ehud Barak said Israel is fighting a “war to the death” with Hamas, the group that controls Gaza. Prices also advanced as China, the world’s second-biggest energy consumer, said it will supplement its emergency oil stockpiles while prices are low, and the United Arab Emirates announced compliance with OPEC production cuts agreed on this month.

“The instability in the Middle East may well push oil prices higher,” said Rob Laughlin, a senior broker with MF Global Ltd. in London. “China’s plans to stockpile crude may take up some slack from the demand destruction from the economic slowdown.”

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Crude oil for February delivery rose as much as $4.49, or 12 percent, to $42.20 a barrel in electronic trading on the New York Mercantile Exchange. It was at $40.44 at 11:10 a.m. in London. Today’s gain pares oil’s plunge from its $147.27 a barrel record on July 11 to 73 percent.

Hamas, the militant Islamist group that seized control of Gaza last year, is backed by Iran and considered a terrorist organization by the United States. Iran holds the world’s second-largest oil reserves and sits on the narrow sea channel through which oil from the Persian Gulf is shipped.

Futures prices fell 11 percent last week, reaching a four- year low of $32.40 on Dec. 19.

Full article here

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4 Responses to “Crude Oil Rises After Israeli Attacks on Gaza Roil Middle East”

dRapNOid Says:
December 29th, 2008 at 3:26 pm
Aaaaah…..now it all makes sense.
L E V I A T H A N Says:
December 29th, 2008 at 5:24 pm
Exactly, and they thought you would not notice. You are not governed by Governments, but by an arrogand and deadly “Elite”
L E V I A T H A N
pissed in canada Says:
December 29th, 2008 at 9:39 pm
Oil won’t go over 50$ a barrel, these minor fluctuations mean absolutely nothing. The entire stockmarket and commodoties market collapsed (except gold). They are now in a period of stability. This alone proves that all off the paper/digital markets are schrewdly controlled. We will have some stability for the next little bit but wait for the BIG collapse to occur sooner rather than later. Either get prepared or if your too stupid to do that, get PREPARED to stand in line at the soup lines. Don’t worry, in another 2 months it won’t matter what gas sells for at the pump as the pumps will be dry. We are going for a wild ride!
william b travis Says:
December 31st, 2008 at 1:14 pm
this attack on gaza has been carefully staged for the
express purpose of raising oil prices