All The News that is fit to Ignore.
Gee I miss the old days when a headline or two would get the oil screaming. When the markets feared that even the loss of just one drop of oil could knock the world out of its delicate supply versus demand balance. You remember those days not to long ago when the market soared on even the most mundane headline. Instead what we have now is a lack of passion and that oh so boring market stability. Oh sure oil may try to reluctantly breakout to the upside as it follows the stock-market on its earnings fueled optimistic rally yet deep down it really does not want too. You see the oil glut the likes of which we haven't experienced in decades is leading to a drab oil market and heavens forbid less interesting Energy Reports, Oh No!
So let's pretend if only for today that these stories that used to drive markets wild actually still matter to price. Like for example say sanctions on Iran. Something like, oil traders ran for cover as the long awaited sanctions on a still defiant Iran took hold. (Ok well everything is true except for the running for cover part) Iran's President Mahmoud Ahmadinejad warned that sanctions imposed by arrogant Western powers will not slow their nuclear ambitions. The European Union adopted new sanctions targeting Iran's foreign trade, banking and energy sectors brought sharp criticism from Russia's Foreign Ministry. Russia that previously scolded Iran for its lack of cooperation with the world over its nuclear program now says that according to the AP that the new EU sanctions against Iran show scorn for the United Nations and the so-called "sextet" working to resolve disputes over Iran's nuclear program. Russian Foreign Ministry spokesman Andrei Nesterenko said Tuesday the move "not only undermines our joint strength in the search for a political-diplomatic resolution of the situation around Iran's nuclear program but demonstrates scorn for the carefully developed and agreed-upon position of the U.N. Security Council resolution."
Iran of course has threatened to lash out in the past if sanctions are imposed now has the oil market yawning. Dam that spare production capacity. Venezuela shocked the oil market threatening to cut off the US from oil supply. Oh all right the market was not shocked because Hugo Chavez always is shooting his big mouth off. So once again the oil market yawned again while the "Big Mouth down South" threatened to cut off oil supplies to the United States If Columbia attacks Venezuela. Hugo Chavez made this threat because Colombia says that Venezuela is supporting and granting safe haven to Colombian rebels. Hugo in his paranoia claims that this is a charge cooked up somehow by the United States. Who knows, maybe it is a dastardly plan even being perpetrated by George Bush and Dick Cheney? If you don't belive him just ask a Columbian rebel if you can find one. Try looking in Caracas. Then of course because of our oil consuming ways we have this great transfer of wealth going to countries that do not like us very much. Like Canada!
Canada is the number one energy provider to the United States. Look at all those rich Canadians driving around in their fancy all terrain vehicles and flaunting their free health care and their hockey gold medal at us while they are paying for it with all of that U.S. energy consuming dollars. Is there any wonder why need to reduce our foreign energy dependence for heaven sakes!
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at firstname.lastname@example.org