Over the last week or so oil has been tempting to bust through the psychological $60 barrier but so far had come up just a little short. On Tuesday, oil prices rose up and kissed $60 but until today we had not seen prices break through their resistance.Oil hit a high earlier today of $60.42 and is currently (early morning) trading just a bit north of $60 at $60.05. We got the needed push necessary today as we have seen fresh threats coming out of OPEC giant Iran directed towards America.
As we all know, Iran and America have been in heated debate recently regarding Iran's interest in developing nuclear power. The Iranians insist upon the fact that they are merely interested in providing more effective power for their citizens, but America thinks that the country has more sinister ideas in mind.
America has been putting forward threats of military action should evidence come out that Iran is definitely seeking the technology to develop nuclear arms, and today Iran issued a statement, saying that should any sort of military action be taken against it, Iran would strike U.S. interests around the globe. If you ask me, this isn't really anything new. Everyone could assume that this would be the natural reaction to a country being attacked, but it is enough to put traders into buying mode.
Another factor at play is the wintry weather forecasts for America that predict more cold weather lingering across the nation. Combined with the fresh threats from Iran, this was just what the market needed to give oil the long awaited push through $60.
Will prices close out the day at $60? We will just have to wait and see. Until we see a closing price above the $60 barrier, I think we are going to to continue to see prices see-saw between the upper $50's and lower $60's.
What are your thoughts on the Iran situation? Do you think they are truly seeking nuclear power for their country or do they, as the Bush administration would like you to believe, have nuclear arms in mind?
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.
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Reader Comments (Page 1 of 1)
2-10-2007 @ 6:23PM
PeckEC said...
Ever since Jimmie Carter turned his back on the Shah and toadied to the Ayatollah, we have had a lot of trouble with Iran. They held our embassy hostage for 444 days. They have worked with and financed the Taliban and other enemies of the U.S. We helped Iraq in its 10 year war with Iran and now Iran lumps us with Israel as a mortal enemy. We can-not believe anything they say; their first order of business remains: Possess nukes. When they do, we will know too late,if we trusted their word, that we should never have done so. believe