Oil could hit $220 on MidEast, N Africa

Discussion in 'Wall St. News' started by Grandluxe, Feb 23, 2011.

  1. LONDON Feb 23 (Reuters) - Oil prices could peak at more than $220 a barrel if Libya and Algeria both halted production as a result of spreading violence in the Middle East and North Africa, Nomura said on Wednesday.

    Analysts compared the current situation to the 1990-91 Gulf War when prices jumped 130 percent over seven months as OPEC spare capacity was reduced to 1.8 million barrels per day.

    "If Libya and Algeria were to halt oil production together, prices could peak above $220 per barrel and OPEC spare capacity will be reduced to 2.1 million barrels per day, similar to levels seen during the Gulf war and when prices hit $147 a barrel in 2008," the Japanese bank said in a note.

    Do you agree?
  2. Larson

    Larson Guest

    Looks similar to the Iranian cutoff of 1979, which was worse, although short-lived. The current situation is very fragile.
  3. Looks similar to the Iranian cutoff of 1979, which was worse, although short-lived. The current situation is very fragile.


    I know people are hope'n and wishing and thinking this is going to be a short lived event as well.

    IMHO, not the case. 7 Arab nations under-revolt. This is not going to die down anytime soon.

    The Geo-political situation is very bad. In fact, I have not had contact with clients in Egypt, Libya, abu dhabi, Jebel Ali. I have spoke to clients in Jeddah, Sadudi Arabia...things are very tense there. They are very nervous and not sure if a fire will start there as well.

    North Africa is in the same boat.

    keep in mind, my clients are all Shipping Lines and NVOCCs' Cargo has come to a halt in that region. Meaning Oil is about to be cut off..
  4. Maybe your clients in Libya have been killed
  5. LEAPup


    I believe he is in a PE Firm meaning $$$ may come from all over the Globe. I'm RIA and only have US Clients, but how about this for a comment?

    "Hopefully your Clients in Libya are finding a safe environment to hold up during this uprising."
  6. Breaking news on Al jazeera


    I guess thats part of gadaffi's personal guard or soemthing
  7. I do not believe they have been harmed.

    They may have shut down and left. We will get word from them eventually. I do believe that their business may be lost.

    This event isn't going to end over night and IMHO, it is just the start.

    Arab World knows the US is weak with OBAMA and with the Congress still controlled by the Scumbag Liberals.

    They also know that the US is not in a position to bring Military in to play. They also Know Hillary is a joke.

    So, I fear that any "Capitalist" in that region will loose his/her business and most will take their money and flee.

    The most interesting part is who will come to blows with the ARAB world when the Oil is cut off? China? Russia? EU? It will not be the USA.
  8. dsave


    We should have listened to Pickens. Being able to rely on NG at a time like this would help greatly.
  9. LEAPup


    Agreed! Odumba makes Jimmy Carter look like a winner. That's bad considering I remember as a kid what we went through sitting in gas lines in the late 70's. We lived in New Orleans then, and my Dad had to lean up against the car to keep people from jumping the hour long line in front of us. Oh yes, we had a station wagon with vinyl seats, and we couldn't use the a/c as the we certainly couldn't afford to idle. HOT!

    Odumba makes hiding the head in the sand, and being weak a sport! Insane! However, this seems to be more important to him today: http://www.cnn.com/2011/POLITICS/02/23/obama.gay.marriage/?hpt=T2
    And that's a link from CNN, the network that was in love with Odumba.:eek:
  10. achilles28


    Yes, oil will hit 200$. Possibly, 220$.
    #10     Feb 23, 2011