Four Factors In Oil Price’s Climb

Oil markets churned on Friday as traders tried to figure out how oil’s price would be affected by four different international events: the situation in Libya, violence flaring up in Yemen, the continuing nuclear drama in Japan, and the Chinese government’s decision to raise interest rates.

With so much uncertainty, many traders decided to lighten their positions going into the weekend – but others decided that oil prices will rise, so increased their position. The result was high volume with little price movement. By 1 p.m., the price of oil was very slightly down at $100.69 per barrel on the New York Mercantile Exchange in New York.

Oil prices have stayed around $100 per barrel for the past two weeks, reaching a high of $105.44 on March 7. International developments appear to have stalled oil’s rising prices as market analysts try to decipher the impact of recent events.

“There is so much happening, there is so much more historic up-and-down risk than I have ever seen before,” says Phil Flynn, senior market analyst at PFG Best Research in Chicago.

Oil reaches $100 a barrel: Five winners, five losers

 

Libya

Many traders kept their eyes on the shifts taking place in Libya. Shortly after the UN authorized military action against Col. Muammar Qaddafi, the Libyan foreign minister declared a unilateral cease-fire.

“It reminds me of Saddam Hussein (former leader of Iraq), who knew how to game the UN diplomatic corps,” says John Kilduff, an energy analyst and founder of Again Capital, a New York-based hedge fund that focuses on energy. “It will maintain the uncertainty.”

Did the UN make the right decision?

No matter what happens in Libya over the short term, Mr. Flynn expects Libyan oil will remain off the markets. “To me, if Qaddafi does miraculously stay in power, the world will hit him with sanctions and no one will be able to buy their oil.”

Before the uprising, Libya was pumping about 1.65 million barrels of oil – mostly light crude – each day, most of it going to European nations where it was made into low-sulfur diesel and gasoline.

Oil analysts believe most of the Libyan production has been made up by Saudi Arabia.

“They had been increasing their production even before the Libyan revolution,” says Erik Kreil, an analyst at the Energy Information Administration in Washington.

Although much of the Saudi crude was geared more towards industrial uses, the Saudis have indicated they will blend whatever mix their customers want, says Mr. Kreil.

IN PICTURES: Qaddafi burns oil pipelines in Libya

 

Yemen

Although Yemen is not a significant producer of oil, news of violence in the country’s capital, Sana, was also roiling the oil markets.

“It’s another problematic nation in the region,” says Kilduff. “It borders Saudi Arabia and is important from a regional perspective.”

 

China

In another development watched by the oil markets, China’s central bank raised reserve requirements, in an effort to slow inflation. This will slow oil demand to only a minor degree, says Donald Straszheim, senior managing director at ISI Group, which does China research, in Santa Monica, Calif.

Mr. Straszheim estimates China currently imports about 5 million barrels of oil per day. China’s strong economic growth in recent years has increased its demand for oil about 500,000 barrels of oil per day, each year.

“If the economy grows more slowly, which I think it will, that will lower annual demand growth to 400,000 barrels of oil a day, which in the broad scheme of things is just a rounding error,” he says.

 

Japan

Oil traders are also watching the events in Japan. If emergency crews cannot stop the release of radiation from the damaged reactors, it would lower demand for oil, says Flynn since it would delay reconstruction after the earthquake and tsunami. On the other hand, if the Japanese are finally able to gain control over their nuclear reactors, it would add pressure on the price of oil to rise, Flynn says.

 

Prophecies, Predictions For 2011-2012

Islamophobia Will Grow around The World. Muslims Will Make Islam Worst, Cruel, Violent, Intolerant Religions Of The 21st century.Followers Of Islam will be unwelcomed around the world & Muslims will face Dislike and Discriminati

on in Every Nation in 2011.Saudi Arabia UAE Iran Kuwait Qatar Indonesia

Pakistan will Continue to Support Fund Islamic Terrorism Around The World aimed at the Revival of Islams Global Ascendancy & Eventual Domination but will meet with Great failure & destruction. Millions Of Muslims Will

 

Die around The World As punishment from Allah.Many Of the Young Muslims Will Abandon Islam In The Future due to its Distortion and misinterpretation.

 

Space Exploration and Tourism Will grow. India, China, Russia, USA will Reach  for the Planets & Space stations.For Science will make Rapid Strides with building of fast Rockets with great speed & landing on moon by 2025. & 2040 Four Nations will reach Moon for Scientific Research, Finding Minerals & human settlement.Fossil Fuels Will be Replaced with New Generation Fuels made from Atoms ,Hydrogen & Solar Energy in the future.Space Tourism Will Grow in Future.

 

America & China Will face More Natural Disasters like Tornadoes Hurricanes Typhoons Torrential Rains Snow Storms Floods Earthquakes leading to much destruction of lives & property.Barack Obama Ratings will fall in 2011 & American Economy will weaken. People Of America Will loose faith in Obama but he will be a good president America has seen. Influence Of America Will Decline In World affairs.America will continue to sell weapons to Pakistan and thereby endangering world peace.American Wrong Policies will continue to promote terrorism & Islamic Extremism, Instability In The World, killing of its own Citizens & Soldiers throughout the world by Pakistan based terrorist groups.Unemployment will increase in USA in future.American government will make America the nation of hypocrites. India & America will Work together in future to make Great achievements in the field of science, Space and Economy. Any Country  of the world Who will Run Their Goverments on Guidance and Support From America And China Will Invite Chaos And Suffering.

China’s Hegemony Will Grow Around The World In International Affairs & Chinese Government Will Indulge in False Propaganda against countries and hoodwink its own public. China will be great threat to world peace and will provoke, Adopt Coercive policies,Threaten its neighbours & create misunderstanding among nations of The World.It will Clandestinely Sell Dangerous missiles and Nuke technology to many rogue nations to destabilize the world peace and being irresponsible nations.China will be a great threat to America, Japan, India and other smaller nations in 2011. China Will Never Be A Great Country In The Future but Great Economy. It will face more Disgrace,Unrest & Violent Uprisings in its country.It Will Continue To persecute Torture Execute its people and many religious and spiritual groups leaders in labor camps & secret prisons. Tibetan Buddhists, Muslim Uighurs, and underground Protestants and Catholics will be Arrested & killed. China will Also Secretly prepare to Attack India in Few Years & Fuel Insurgency supplying weapons and give Support, training to Terrorists.There will be great rise in Suicides, divorces in china.Chinese government and companies will Counterfeit Goods of major countries of the world and sell them under fake names & ;labels of countries.China will face floods , man made disasters & Extreme Temperatures fury and many people will be displaced & affected.China will also interfere in internal affairs of smaller countries.It will become most Deceitful, Disliked & Untrustworthy nations of the world.

India Will Be The Great Power by 2035 Spiritually Economically Militarily.Indian Economy Will Have Slowdown in 2011 With its GDP Growth Rea

ching 8.0% .Great Scientific Discoveries will be made by Indians Throughout the world. It will become one of the Richest Countries of The world. India’s Great Sanatana Dharma, Yoga, Spirituality, Popularity Will Soar Worldwide.Inflation & Interest Rates Will Continue to be High In 2011 in India & government of india will lie to its people bymanipulating Statistics.Stock Markets Will Touch New Heights But will Decline in middle of 2011.Gold and Silver prices will also Rise.Crime Will Soar In India 2011, Prostitution & Drug Peddling and Mafia will flourish under the goverment protection. Goverment of india will Lie to its own public.

 

European Countries will see their economy getting weaker with a slowdown in 2011 and public revolting against their own governments shameless and immoral government heads.Unemployment will increase in Europe. Famous Politicians loosing elections with humiliating defeats.Much of the World discovery’s , Inventions, Jobs Will Come from China and India.Western Countries will face much extreme weather conditions bringing life to standstill and economic loss.

ollywood Movies Will become More Popular Throughout The

World And actors will achieve world recognition. International Celebrity Aishwarya Rai Will Find It Difficult To Be a Mother And Conceive A Child.
Kareena Kapoor And Saif Ali Khan Will Not have Happy Married Life in The Future.

Shah Rukh Khan will Struggle in his Career as a Film Actor in Bollywood  in 2011 and suffer from illhealth and so will his family members.

Medical Science Will Make Rapid strides & there will be Breakthrough In Medicine in Times To come. Cures & Treatment For Some Types of Major Diseases & Cancers Will Be found By Man.
There will No Nuclear War In The Future nor There will be World war III in the future. Earth will gradually move towards peace after much Annihilation of Evil and humans.All Predictions and Doomsday prophecies for the destruction of life on Earth and End of the World  in 2012 will turn out to be false and untrue.Peaceful Use of Of Nuclear Energy Will Grow Around The World.More and more nuclear power will be used around the world. Any Country or organization using Nuclear Weapons for a Nuclear attack on any country will be punished  by god with self destruction and complete ruin.
Many Of the Top Al Qaeda & Taliban Terrorist Will get killed In Pakistan and Afghanistan. But Pakistan Military Will Continue to Train ,Fund More Terrorists In Training Camps Inside Pakistan to Spread Terror & Blackmail Around The World. Frustrated Pakistan Army & ISI will Secretly Continue to Support Dangerous Terrorist Groups like Lashkar- E- Toiba & Other Terrorist Organizations to Attack With Terrorist Bombings & subversive activities In India, Afghanistan and kill Indians, Americans & Europeans in 2011.There will no Peace and security in the world till the Pakistani ISI & Pakistan Army are Restructured and Dismantled or are Destroyed. Pakistan Army And ISI Will Train More Islamic Terrorists & Pakistani Citizens & Muslims of Other Nations To Kill Americans Europeans British French Indians Germans Australians Chinese Afghans Israelis, Russians and blackmail their Governments.It Will Create Much  bloodshed in Afghanistan & instability by killing afghans.American Tax Payers Money will be looted and misused by Pakistan Army for Islamic Terrorism against Europe, Americans, Indians and the world and filling their Generals pockets.
Asia, Indonesia and Philippines will face more natural disasters, storms, Floods, Earthquakes leading to displacement & suffering of its citizens.
There will be Rise in Corruption throughout the world. People around the world will make violent demonstrations around the world against their goverments.

World Will See Three Great Economies in times to come Lead By India being first, China Second And America being third by 2035.

World Oil Prices & Commodity prices will rise but will get moderated in the middle of 2011.

South America will see More Floods, Earthquakes, Diseases Outbreaks unrest & soaring crime rate and gang wars.Their Economy will rise

Iran Politicians will take iran to misery and suffering.Iran will promote  Islamic terrorism in Afganistan & Iraq, supply weapons and explosives to jihadis  to kill Americans and Nato forces and promote instability in Afganistan.There will be more sanctions for iranian people & their life more difficult.

World Scientists will agree with findings of Indian Scriptures that there are other Species,Beings and Aliens in solar system, planets that require no  Atmosphere ,water and air like Humans to Exist.Discovery will come in times to come. Powers of human Mind Will Grow as it will be unveiled and will become stronger.