Why did Oil go to $110 today ? Because of the Aftershock in Japan ??

[gunDriller]

http://finance.yahoo.com/news/Oil-tops-110-after-Japan-cnnm-1666158615.html;_ylt=AjPCQOKapSdr8RJGoiP1cW67YWsA; _ylu=X3oDMTE1Z3FwbHR1BHBvcwM1BHNlYwN0b3BTdG9yaWVzB HNsawNvaWx0b3BzMTEwYWY-?x=0&sec=topStories&pos=2&asset=&ccode=


Oil tops $110 after Japan suffers another blow

cnnmoney

Ben Rooney, staff reporter, On Thursday April 7, 2011, 3:53 pm

Oil prices jumped above $110 a barrel, a fresh 2-1/2 year high, after Japan was hit with another major earthquake.

May oil futures settled up $1.47, or 1.4%, to $110.32 a barrel. Prices had jumped as high as $110.44 -- a level not seen since September 2008.

The gains came after a 7.1-magnitude earthquake occurred around 10:30 a.m. ET, near the same location off the coast of Japan as the March 11 earthquake.


Now - does that make sense ?

If anything, the aftershock will reduce demand. Japan's demand for oil was already reduced by the quake - 1/3 of their industry is shut down, people are staying home.

Admittedly, the quake & tsunami reduced their online oil-refining capacity. So it is logical to see an increase in the price of gasoline - but not in the price of oil.


Conclusion - the Yahoo article is 100% bogus, just some journalist filling a writing quota.

So why did oil spike ? Israeli traders with foreknowledge of an imminent event bidding up the price ? Old-fashioned speculation, as in 2008 ?

[Serpo]

Does anything make sense anymore

[osoab]

Between Izzy and Japan, I really figured the below was the reason.

Gaddafi Starts Bombarding His Own Oil Fields (http://www.zerohedge.com/article/gaddafi-starts-bombarding-his-own-oil-fields)


From the FT: "Oil production in rebel-controlled eastern Libya has stopped after troops loyal to Muammer Gaddafi bombarded several oilfields, the opposition said on Wednesday. The assault came hours after the rebels exported their first cargo of oil into the international market, potentially opening the door to millions of dollars of funding to sustain their uprising against Colonel Gaddafi’s 41-year rule. The attack against oilfields in the east was the first against production facilities. Previously, only port facilities and crude oil storage tanks in the Es Sider and Ras Lanuf, also in the east, were damaged during the conflict." We are confident that this escalation will give NATO the caed blanche to commence a land-based campaign and prevent further infrastructure destruction before Gaddafi causes irreparable damage to even more facilities (although Halliburton naturally couldn't care less).

The rest at the link.

Gold and silver didn't follow along. Maybe somebody wanted to burn some shorts?

[gunDriller]

Between Izzy and Japan, I really figured the below was the reason.

Gaddafi Starts Bombarding His Own Oil Fields (http://www.zerohedge.com/article/gaddafi-starts-bombarding-his-own-oil-fields)


From the FT: "Oil production in rebel-controlled eastern Libya has stopped after troops loyal to Muammer Gaddafi bombarded several oilfields, the opposition said on Wednesday. The assault came hours after the rebels exported their first cargo of oil into the international market, potentially opening the door to millions of dollars of funding to sustain their uprising against Colonel Gaddafi’s 41-year rule. The attack against oilfields in the east was the first against production facilities. Previously, only port facilities and crude oil storage tanks in the Es Sider and Ras Lanuf, also in the east, were damaged during the conflict." We are confident that this escalation will give NATO the caed blanche to commence a land-based campaign and prevent further infrastructure destruction before Gaddafi causes irreparable damage to even more facilities (although Halliburton naturally couldn't care less).

The rest at the link.

Gold and silver didn't follow along. Maybe somebody wanted to burn some shorts?


well, that makes more sense.

the article attributing the price rise to today's Japan quake ... they may as well attribute it to Lady Gaga missing her period.

[osoab]

Between Izzy and Japan, I really figured the below was the reason.

Gaddafi Starts Bombarding His Own Oil Fields (http://www.zerohedge.com/article/gaddafi-starts-bombarding-his-own-oil-fields)


From the FT: "Oil production in rebel-controlled eastern Libya has stopped after troops loyal to Muammer Gaddafi bombarded several oilfields, the opposition said on Wednesday. The assault came hours after the rebels exported their first cargo of oil into the international market, potentially opening the door to millions of dollars of funding to sustain their uprising against Colonel Gaddafi’s 41-year rule. The attack against oilfields in the east was the first against production facilities. Previously, only port facilities and crude oil storage tanks in the Es Sider and Ras Lanuf, also in the east, were damaged during the conflict." We are confident that this escalation will give NATO the caed blanche to commence a land-based campaign and prevent further infrastructure destruction before Gaddafi causes irreparable damage to even more facilities (although Halliburton naturally couldn't care less).

The rest at the link.

Gold and silver didn't follow along. Maybe somebody wanted to burn some shorts?


well, that makes more sense.

the article attributing the price rise to today's Japan quake ... they may as well attribute it to Lady Gaga missing her period.


I don't think they care what they write any more. I think most mainstream articles are written for 2nd graders by 3rd graders anymore.