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Author Topic: Egypt risk premium built-in, limiting oil’s gain Back to Topics
brbaritone

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Virginia

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Message Posted: Aug 19, 2013 6:36:28 AM

Benchmark global oil markets may already fully reflect the risk of political instability worsening in Egypt and the spill-over effects on the broader region, implying further oil price gains may be limited in scope this week, traders and analysts told CNBC.

Oil prices are still likely to drift higher this week, CNBC's weekly sentiment survey showed, though fundamental investors may try to blunt the advance believing current prices don't reflect well-supplied markets and a slowdown in major emerging market consumers such as China.

"There is still too much oil," said Thomas McMahon, Director of the Pan Asia Clearing Enterprise and former chief executive officer of the Singapore Mercantile Exchange. "But cheap dollars, technical disconnect and Egypt seems to be sweeping this aside. [...] "
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Tekkersmom57
Champion Author Syracuse

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Message Posted: Aug 19, 2013 11:58:27 PM

And the drama continues.....another story, new day!!!! The speculators will continue to do what they do best....SPECULATE!!!
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YumaFellow
Champion Author Arizona

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Message Posted: Aug 19, 2013 12:32:11 PM

If this were really a free market instead of a rigged one, the price of oil would be falling on oversupply.

But the speculators continue to run the show, and the oil companies are happy to oblige.
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mdcsgt
Champion Author South Carolina

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Message Posted: Aug 19, 2013 11:29:04 AM

MORE SPECULATION!
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Infidels
All-Star Author Alberta

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Message Posted: Aug 19, 2013 9:39:34 AM

Egypt is an excuse and a poor one at that
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bkplenge
Champion Author Tallahassee

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Message Posted: Aug 19, 2013 9:33:40 AM

"There is still too much oil," said Thomas McMahon, Director of the Pan Asia Clearing Enterprise and former chief executive officer of the Singapore Mercantile Exchange. "But cheap dollars, technical disconnect and Egypt seems to be sweeping this aside."

The speculators have been sweeping this aside for a number of years now.
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gsofrs
Champion Author Greensboro

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Message Posted: Aug 19, 2013 9:05:10 AM

Speculation ammo.
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doeslayersr
Champion Author Illinois

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Message Posted: Aug 19, 2013 9:02:45 AM

And when the little boy cried wolf... no one noticed or came to his aid because he had lied about peak oil and the climate change scam ... I mean about the big wolf for so long.
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scu227
Champion Author New Haven

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Message Posted: Aug 19, 2013 8:19:38 AM

We don't need their oil anyway !!!!
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Eagle3236
Champion Author Missouri

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Message Posted: Aug 19, 2013 7:52:38 AM

This is why we should have built the Keystone Pipeline!
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bills299
Champion Author Atlanta

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Message Posted: Aug 19, 2013 7:27:59 AM

WoW!
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Canucktree
Champion Author Alberta

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Message Posted: Aug 19, 2013 7:24:49 AM

Oil is slightly higher, but the pumps jumped almost 10% overnight!?
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pilotmass
Champion Author Boston

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Message Posted: Aug 19, 2013 7:17:07 AM

Zzzzzzzzz
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BigRedVTX
Champion Author Georgia

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Message Posted: Aug 19, 2013 7:12:55 AM

In response: While Egypt produces little or no oil, it holds a key transport feature for oil in it's hands (i.e., Suez Canal and the Suez Pipeline). Plug the canal and/or the pipeline and the cost of transportation goes up tremendously.
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USMCturtlehead
Champion Author Lexington

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Message Posted: Aug 19, 2013 7:11:38 AM

Okay!
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dabayer
Champion Author New Hampshire

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Message Posted: Aug 19, 2013 7:10:11 AM

What "RISK"??? Does anyone buy crude from Egypt?

Nothing but greedy manipulation and speculation!!!
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scottyiam
Champion Author Reading

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Message Posted: Aug 19, 2013 7:08:36 AM

its a joke
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Buckeyee
Champion Author Maine

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Message Posted: Aug 19, 2013 7:06:20 AM

Oil speculators running to the bank, AGAIN !! Where is the Pres, why on vacation again.
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OHIO50
Champion Author Denver

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Message Posted: Aug 19, 2013 7:00:19 AM

OK.
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WonderfulMI
Champion Author Michigan

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Message Posted: Aug 19, 2013 6:57:14 AM

Claiming a cause for rising oil prices is foolish. The same events happen without any price rise.
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humblepie
Champion Author Toledo

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Message Posted: Aug 19, 2013 6:52:06 AM

I really don't care about Egypt much
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gs7101
Champion Author San Antonio

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Message Posted: Aug 19, 2013 6:50:42 AM

This crisis will eventually bring higher oil prices!
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335d1
Champion Author Virginia

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Message Posted: Aug 19, 2013 6:48:19 AM

And gas prices will rise.
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Ltdc
Champion Author Long Island

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Message Posted: Aug 19, 2013 6:47:21 AM

Radical religious factions will help ensure the mid east will have problems for long after all of us are gone.
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CarefulDriver
Champion Author Ann Arbor

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Message Posted: Aug 19, 2013 6:46:35 AM

Can't we get fuel from other parts of the world?
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MImusicman
Champion Author Michigan

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Message Posted: Aug 19, 2013 6:42:28 AM

Well said VMIJim
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brbaritone
Champion Author Virginia

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Message Posted: Aug 19, 2013 6:38:57 AM

The article continues:

" [...] Common sense and supply demand will prevail but maybe not this week."

Both Brent crude and U.S. oil futures ended higher for the sixth straight session on Friday, with Brent posting its biggest weekly percentage gain in six weeks as turmoil in Egypt and Libya stoked worries about oil supply security, Reuters reported.

Brent crude oil futures for October delivery finished Friday 80 cents higher at $110.40 a barrel. Brent gained 2 percent on the week, its largest weekly percentage gain since the week to July 5.

U.S. crude oil for September delivery settled 13 cents higher at $107.46, after trading as high as $108.17. U.S. oil futures ended 1.4 percent higher on the week.

Suez Canal

CNBC's weekly sentiment survey showed 70 percent, or fourteen out of 20 respondents, believe prices will gain this week. A quarter, or five out of 20, say prices will fall while one expects the market to trade at around current levels.

"Some risk premium has been built into markets for the situation in Egypt," said Ric Spooner, Chief Market Strategist at CMC Markets in Sydney, who expects prices to fall this week. "However, further upside from this source is limited unless the market gets more tangible evidence that Suez may be disrupted."
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VMIJim
Champion Author Alabama

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Message Posted: Aug 19, 2013 6:38:40 AM

You can bet these OPEC vultures have a backup plan & no thanks to Obama's failed foreign policy. The bottom line is that the Obama Administration has done nothing to control oil speculation/prices/exports, reduce our dependence on foreign oil, or improve our economy. Obama's sole agenda is to cater to his tree hugging, stimulus sucking, union dominated, ultra liberal major contributors. As a result, we continue to be screwed at the pump, with our utilities, & with our taxes. Nothing will change as long as Obama is in office & controls the Senate. 2014 Elections are coming - stop this madness!!
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