Editor's Note: This post was written by Terry Woo, one of Minyanville's sharpest minds AND/OR brightest bulbs. For more perspective AND/OR insight, visit www.minyanville.com.
Crude oil is trading lower for a third day in a row.
Currently there's talk out there of demand destruction in other countries (i.e. China's slowing economic growth and slowing U.S. economy). But I don't think there has been enough coverage on financial television regarding Iran.
Remember crude's breakout when the world speculated Israel was preparing to attack Iran's nuclear facilities. And remember more upward pressure when Iran retaliated by test firing its long-range missiles.
As reported by CNN yesterday, Undersecretary of State William Burns is accompanying an EU delegation and will meet with a top Iranian nuclear official... something that hasn't happened in decades! It's a game changing event. That combined with North Korea (cooperating with the world in giving up its pursuit of nuclear weapons), I believe this is simply the Iranian risk premium being taken out of the price of oil.
Before the bell: Stocks futures steady ahead of GDP, housing data
Google's plan for netbook PCs moves higher into the clouds
So long peak oil, here comes peak uranium
Reader Comments (Page 1 of 1)
7-18-2008 @ 7:51AM
al coholic said...
All will not be well with oil prices simply because we are having a meeting with some powerless Iranian nuclear figurehead. I wouldn't bet the farm on that North Korean promise of cooperation either.
In fact in all likelyhood the price of oil at least for the next few years will be affected dramatically by poitical, environmental crisese, worker strikes and sabotage, speculation, and most importantly, greed.
Get used to it. The sad truth is we are condemned to this situation for many years to come.
7-18-2008 @ 8:54AM
Minyan T. said...
I agree Al. I wouldnt bet the farm at all. It's just that we saw the biggest one day price drop in oil in decades. I think there was more to the story than supply/demand issues that financial media continues to talk about.
Just my two pennies. :)