Updates
Later, 6:05 p.m.: based on unpublished comments regarding $5 gasoline, folks may want to check out all the earlier posts tagged with "$5Gasoline" at the bottom of the blog, or one can cut and paste this URL: http://milliondollarway.blogspot.com/search/label/%245Gasoline.
Very interesting to say the least, particularly the post of February 15, 2012. The dots all connect.
Original Post
Link here to Globe and Mail.For the record, I started opining about "this" on May 2, 2012.
We'll see what happens when the oil sanctions kick in for Iran in July 2012.
ReplyDeleteIf the only event in the Mideast in July, 2012 (i.e., no Israeli raid on Iran; no shutting down of the straits; no shooting war, etc) the sanctions on Iran effective July 1, 2012, won't have any effect on price of oil.
DeleteMy hunch is that full sanctions won't be applied anyway. If I'm wrong, the Iranians/Syrians/Indians have already learned how to circumvent these sanctions. The effect of the sanctions was felt some weeks ago (see earlier blog) when insurers stopper insuring oil tankers in anticipation of the sanctions). Since then, the price has dropped back (and significantly, one might add).
believe that we will see a see-saw effect over the next few months pivoting on the $90/bbl range. The Iran situation will cause some fluctuations in the price but nothing major unless the Strait is completely closed for an extended period of time. I think you have to look at the price as an adjustment just like the stock market when it rallies.
DeleteI agree 100%.
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