Time To Go Long Oil Again As Iran Ramps Up Uranium Enrichment

Reports of rising tensions between Iran and Saudi Arabia emerged over the weekend, following the execution of a prominent Shia cleric in the country. Reports also suggested that the US was postponing placing fresh sanctions on Iran, following the “highly provocative” ballistic missile test in December. Sheikh Nimr al-Nimr, a prominent Shia cleric and vocal critic of the Saudi government, was executed in Saudi Arabia over the weekend. The execution followed accusations of the Sheikh being involved in terrorist activities, and bearing arms.

With the US set to run out of on-land storage in the space of just three months and with the Iran nuclear deal still stuck in “tentative,” “maybe/maybe not,” purgatory (i.e.

Roughly 17 million barrels of crude a day flow through the Strait of Hormuz and Iran has threatened to block the strait if Europe imposes economic sanctions. How credible is that threat? Joint Chiefs of Staff says Iran Has Ability to Block Strait of Hormuz Please consider Iran Has Ability to Block Strait of Hormuz, U.S. General Dempsey Tells CBS

energyspectrumindo.comThe last time crude oil prices spent significant time below $30 a barrel Ben Affleck and Jennifer Lopez were still “Bennifer,” Howard Dean was leading the Democratic primary race and Saddam Hussein had just been captured by U.S. troops in Iraq.

Hindsight is great at identifying over-enthusiasm. Just look at the price of oil over the past few months. Its remarkable rise began in early April, after dipping below US$40 a barrel for benchmark West Texas intermediate (WTI), and continued until it peaked above US$50 through much of June. But now, with WTI once again around US$40, the blinkers are off. What were markets thinking? We look back and see the impact of the Fort McMurray fires, and the supply disruptions in Africa. How could anyone believe that was going to last?

Phil Stewart/ReutersIran's elite Revolutionary Guard Corps on Monday dispatched five military vessels to monitor a U.S. warship hosting one of America's top generals on a day trip through the Strait of Hormuz, coming as close as 500 yards (meters).

When crude oil decidedly broke its recent support level, and slid right back into the $40-handle range which served as a springboard for the dead oil bounce earlier this year, many blamed the imminent surge of Iran oil deliveries for as a the downside catalyst. The reality, however, is that a long time will pass before significant Iran oil may flood developed markets, and yet even without Iran oil the market has recently seen a surge in supply and production over the past few months - it is this sudden oil glut that has been the true driver of most recent slide in prices.

The prospect of a U.S. military strike on Syria has stoked fears that Damascus, or its closest ally Iran, may retaliate against U.S. allies in the Gulf – all leading global oil or gas suppliers. The Middle East produced 28.27 million barrels a day (bpd), or 32.5% of the 86.15 million bpd of oil produced globally in 2012, according to the BP Statistical Review. Below are facts about threats to the major energy transit routes of the Middle East and possible alternative routes.