Oil Prices Hit Highest Level Since 2014

Oil prices hit their highest level since December 2014 after US President Donald Trump warned of strikes on Syria and cautioned Russia against backing Bashar al-Assad. Brent crude, the international benchmark, hit a high of $71.96 — the most in more than three years. By 1.20pm the marker had risen 62 cents to $71.66 a barrel, taking gains from the last three days to almost 7 per cent.The military and oil industries are the only which prosper in the war. 

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One word - compensation...

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Expect to pay more at the pump.

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On the surface, things look good for oil producers... Each escalation in any field for them means pockets full of money... But after few days when we come to gas station we are in shock thinking what's going on. Price of gallon is $3 or $3.42 or prices in markets are much higher than before.

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Someone will have a champagne on business morning if it rises above $75? :)

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Definitely, we have to worry about of effect of high prices on our economy...It could be "hard attack" on our pockets.

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It's not good, but still better than seven, six, five years ago...

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This latest jump has been crazy - I am hearing rumours of two loud blasts heard in Riyadh. Geopolitical? This is all coming despite the build reported by the EIA. I imagine the extreme net-long position held by traders has exaggerated it as well.

Can anyone shed some light for me? The rise in the last couple of days has been ridiculous.

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Do you think it will keep going up? I don't want them to raise my bus fare because fuel prices are too high :( 

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9 minutes ago, TomTom said:

Algos go wild on these kind of headlines: https://www.reuters.com/article/us-saudi-security/saudi-arabia-intercepts-missile-over-riyadh-al-arabiya-idUSKBN1HI28K 

Expect prices to correct after this peak...

Interesting - based on the time stamp of that article it looks like it could have been the trigger for the latest spike. If it were a singular incident I would expect a correction...

https://oilprice.com/oil-price-charts 

 

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Yeah, this has algo trading all over it. I can't see anything else out there to explain the severity of the spike.

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Rumours of 2 UAVs downed near or inside abha airport in the south of Saudi Arabia - still nothing official out about exactly what is happening

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Saudi Arabia has already sent a signal that wants to get oil prices near $80 a barrel to pay for the government’s crowded policy agenda and support the valuation of state energy giant Aramco before an initial public offering. Riyadh is aiming for $80. From their point of view Riyadh’s desire for higher prices is driven by domestic policy and ambitious of  Crown Prince MBS. He has set out an ambitious and expensive economic and social reform program. Also, they are including in military conflict in Yemen and costs are increasing....So, the Middle East(Syria, Yemen, SA) dictates everything

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2 minutes ago, Pavel said:

.... From their point of view Riyadh’s desire for higher prices is driven by domestic policy and ambitious of  Crown Prince MBS. He has set out an ambitious and expensive economic and social reform program..... 

Ambition for higher price and not losing its share in the market, of course  :) 

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I'm sure that this is not what the Saudis were aiming for when they said they wanted $80 oil...

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The latest Yemen/Saudi goings on (which is hard to interpret) is but one thing pushing up oil prices today. Trump's threat over Syria and Russia's counter-threat is also helping to lift prices. Add to that the softening of China's position in the trade war-that's-not-a-war, and you have higher prices. 

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12 minutes ago, Pavel said:

Saudi Arabia has already sent a signal that wants to get oil prices near $80 a barrel to pay for the government’s crowded policy agenda and support the valuation of state energy giant Aramco before an initial public offering. Riyadh is aiming for $80. From their point of view Riyadh’s desire for higher prices is driven by domestic policy and ambitious of  Crown Prince MBS. He has set out an ambitious and expensive economic and social reform program. Also, they are including in military conflict in Yemen and costs are increasing....So, the Middle East(Syria, Yemen, SA) dictates everything

Yeah, but it's interesting, because Russia doesn't want higher oil prices. More importantly, Iran has an oil breakeven of $52, so it really doesn't want higher oil prices either. But if this really is an Iran-backed play against Saudi, then they are only helping Saudi Arabia. None of these Houthi attacks have done much if any damage, if we are to believe Saudi reports.

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6 minutes ago, TomTom said:

I'm sure that this is not what the Saudis were aiming for when they said they wanted $80 oil...

If Saudi's really wanted $80 oil, they could just embellish instead of downplaying the result of the bombings.

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1 hour ago, msk said:

Do you think it will keep going up? I don't want them to raise my bus fare because fuel prices are too high :( 

Yes, gas prices at the pump are on the rise as well.

GasBuddy has confirmed some stations have already raised prices in these areas, and many are likely to follow. Over the next 24-48 hours, average gas prices in Michigan and Indiana will rise to their highest since August 2015, when BP’s Whiting, Indiana refinery had an unexpected outage.

https://business.gasbuddy.com/great-lakes-gas-prices-rising-hit-multiyear-highs/

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This summer will be a hell, and I'm not talking about weather and high temperatures. US Government estimates that prices at the pump will probably be 14% higher than last summer. That is an average of $2.74 per gallon. 

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well like I said before the night of the ninth on the 5 min chart is telling me someone is establishing a long position and that overwhelms the sellers and even tho we are building supply I wonder if that is in part due to the longer lasting winter and when driving season does come and we start experiencing draws on crude and gas with an underlying bullish sentiment I would have to say the 70,75,80 and possibly 85 levels may come into play, I am not really that bullish right now but will be looking to put longs back on around the lower end of the raising long term trend lines and if I can I am going to try to forget about them for a while instead of being a short term trader

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We need to keep an eye on this situation amd hope the good outcomes are with us.

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Very happy for this website and the treasure troll of hot information it reveals;

Jerry

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