Monday, December 5, 2011

Middle East tensions bring rising oil prices as crude crosses $102 per barrel

As tensions in the Middle East, particularly Iran and Syria, continue to boil, the growing price of oil remains the constant consequence to the West for intervening in the affairs of oil nations.

With WTI breaking $102 and Brent over $111 this morning, driven by Iran and Syria tensions, it would seem tough for a nation exporting its way to success, that is so dependent on both domestic consumer and energy to grow 'as expected' with energy premia so high - or perhaps the justification is the energy sector will carry the S&P through the next quarter as earnings expectations are cut. Nevertheless, as Reuters points out, the risk of supply disruptions remains high. - Zerohedge

Couple this with new predictions for 2012 by Bank of America for $250 oil, and the future for the economy has taken another hit that will deepen the recession (or depression) we are currently in.


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