Oil Prices Up 19% At the Open and USA is Ready to Hit Saudi Attackers

Oil prices hit their highest in four months after Houthi drone attacks damaged Saudia Arabia oil refineries.

At the start of trading, Brent crude jumped 19% to $71.95 a barrel, while the other major benchmark, West Texas Intermediate, rose 15% to $63.34.

Iran has been backing the Houthi.

51 thoughts on “Oil Prices Up 19% At the Open and USA is Ready to Hit Saudi Attackers”

  1. In California, as rate payers we are given the option to choose the source of our power. Last March I change my power source through the electric company to 100% renewable. I pay more per month but it allows all my energy to come from renewable sources until I decide to upgrade to solar on my house myself.

  2. If we launch an attack, Trump will tweet it, so the Iranians would know. And believe me they will respond. Gasoline going from $2 to $5 a gallon will be more pain than Americans will be able to take.

  3. You would be surprised how much pain the Iranians will be willing to take. Will the US and Europe be as willing?

  4. For Venezuela to make any money they need to get the oil out of the ground first and then get it to market. Neither of those things is happening much.

  5. Government leaders are very, very loathe to start a pattern of deliberately killing government leaders.

    For obvious reasons.

    For everyone who ISN’T a government leader it would probably be a significant improvement over a normal war.

  6. As long as there is no crazy billionaires with vast amounts of TSLA stock and who also owns a rocket factory… hang on… and who has also been recently badly burned by Saudi Arabia not fulfilling a financial promise resulting in him being prosecuted and losing a valuable position…just a minute

  7. Any particular reason you think that shorting would be used, rather than going long?

    After all, US oil companies will be getting a boost right now. So might Tesla.

  8. Don’t they have fragments of the missiles and drones (is there any dividing line between a cruise missile and a semi autonomous large kamikaze jet powered drone? Or does it depend on what sort of mental picture you are trying to induce in your audience?)

    So there is evidence that someone is responsible.

    I’ll admit that a 1 minute Duckduck for images of said fragments didn’t turn up any pictures actually from this recent attack. Though I DID find a report that some missiles hit Riyadh and killed one person.

  9. Assuming that “fusion” means “fusion that is small, lightweight, and self contained enough that it is an improvement on fission, rather than the football stadium sized behemoth that ITER seems to be heading to”

  10. Dear President Xi,

    You wanted a secure supply of oil? Well we would like a more rational government running Iran. Call me.


  11. The situation is even more dire than that.

    Stupid people even reject well supported science and physics and would rather look like a buffoon because admitting they’re pathologically selfish and don’t care about the consequences of their own actions is somehow worse. Some do try and adopt what they think is a more sophisticated stance against well supported science, but it’s equally ridiculous as the positions of the most irrational and inept.

    Ignorance is not knowing, knowing incorrectly is stupidity and knowing correctly but asserting incorrectly is sophistry.

  12. The NSA knows where the those in charge live in Iran. Forget the oil fields … send each of them an autographed cruise missile.

  13. “It is great for the US oil sector too.”

    Oil companies — Russia and Venezuela — and weapons manufacturers make out like bandits, but the average American will be looking at $10/gal gas prices … at a minimum, and over-the-top energy costs will spike the price of everything else as well. It will be a global economic catastrophe, not to mention the US trapped in a long, grotesquely expensive and unwinnable land war in Iran. (As soon as Iran takes US service personnel prisoner, the US will have to either invade or admit the f*ck up and sue for peace. And they always do the former never the latter.) It will be the crushing end of America as we know it.

    The good news … Trump understands this crap and is not gonna fall for it. So relax, there is not going to be any war with Iran.

  14. These days, 70 to 80% of U.S. guided munitions fall within 10 meters of their targets, even at night, with overcast skies, or in moderate winds.

    In World War II, around 18% of U.S. bombs fell within 1,000 feet of their targets, and about 20% of British bombs (at night) fell within 5 miles of their targets.

    Yet despite this massive improvement, expectations of so-called “surgical strikes,” that somehow never result in collateral damage unless someone messes up, have risen far faster. Just about everyone is to blame for that, starting with the defense contractors trying to get government contracts by making overblown claims.

  15. I predicted this years ago.

    small well organized and determined groups can make $$$$$ by “shorting” any stock sector that they can influence thru acts of violence & terrorism.
    These drones will soon be spotted near airports, look shorting of airline stocks.

    Nation States can duplicate this also.
    ie: let’s say Russia is running low on $$$,
    they short the market, invade Turkey,
    make global accusations, posture forces on border, sell, and pull back troops,
    “Count de Money”.

    Rinse and repeat.

    gonna find a cave

  16. How do you know there is no evidence? And you don’t think the saudis (and the CIA) have a lot of spies in the enemy lines to tell them who did it?

  17. I’ve always wondered how that works. I assume – correct me if I am wrong – that you are connected to the main grid. And the main grid has many power sources, some of which are “renewable”. So how do you make sure that only electrons from the “good” sources are used in your home?

    Imagine that you are living, say, 20 miles from a gas power plant but 200 miles from a wind power plant. They are both connected to the same grid which you use.. So, the utility company actually draws the power from the gas power plant (less losses) to power your house, but bills you for “wind power” electricity. Other users who do not care where their electricity comes from, but who lives closer to the wind power plants frequently get their electricity from there (i.e. when the wind blows). Yet, you are environmentally friendly and they are not…?

    Also, when the wind is not blowing, only non-renewables power the grid. Presumably you still use the grid at these times, right? And hence use fosil power…?

  18. I predict the US won’t do anything significant. Whatever the rhetoric, Trump has been a more dovish president than his predecessors.

  19. Reduce Russia’s market share? How? This attack doesn’t restrict Russia’s supply. As Doctorpat says, it helps Russia due to higher prices for its oil exports. It is great for the US oil sector too.

  20. The whole point of MAD was that it stops the first attack from ever happening.

    Of course the reason the first MAD worked is that it was never going to be in doubt who the attack was launched from. If Moscow suddenly got nuked then they would know it was the US or allies. And the US knew that the Russians would know. And the Russians knew that the US knew that the Russians would know. Everyone was playing with their cards face up on the table.

    The problem with this round is that it is feasible for dozens of different, unaligned actors, to launch an attack like this.

  21. The situation is much worse than that.

    Smart people also believe all sorts of nonsense. Though usually a more sophisticated sort of nonsense that’s not so easily disproved.

  22. Sounds like his installation is complete, he will not need those one off services again for a decade or more. How do you imagine current disruptions to fossil fuels will affect him?

  23. Right, because those solar panels & wind turbines make themselves. Then the wind turbines fly thru the air (using solar panel power) to deliver the panels & then themselves (that last leg using magic mushroom batteries). The workers doing the installation either walk or ride bicycles to the site. For the turbines, they dig a monstrous hole with their wooden spoons & pour 395 cubic yards of concrete & 63,400 pounds of reinforcing steel delivered (you guessed it!) by flying, solar powered wind turbines. Connecting the turbines together & to the grid is accomplished by a team of gophers & moles (specially trained by the National Resources Defense Council), laying miles of cable (from WWII, found in this huge warehouse in NJ! no kidding!). 😉

  24. Good news!
    Higher profits for U.S. oil & gas production! New markets for LNG in Europe, reducing Russia’s market share.

  25. I’m on 100% renewable for my electrical too. I have no direct connection to antiquated fossil fuels for my energy needs.

  26. It would be even better if you also had a nice chunk of crude +4.5% div yield.
    Enough to cover you and yours first world energy foot print 😉
    That along with solar on your roof and you’ll never have to worry to much about idiots making waves with the energy supply.

    Always invest in the companies that produces the costly things you need to make your life happen, dividends more than zero out those costs for me.

  27. It doesn’t quite immunize you (though depending on your geographical area, may come close) because volatility in oil prices is still volatility in “energy” prices and your Tesla still connects to fossil-dominated grid power. Unless you live on a Norwegian peninsular fjord powered by hydro and wind.

  28. Iran is itself within easy reach, and Iran depends upon oil tanker shipping through the same strait as its putative targets. Pipelines are likewise quite easy to target, especially the long ones to China.

    Glass houses and throwing stones… who first called the mullahs mad?

  29. Does it matter? Without any evidence, there’s already a group of people out there who want to jump into another needless war. Good luck trying to convince them there isn’t a shred of evidence yet as of what happened or if anyone is responsible.

  30. “but are waiting to hear from the Kingdom as to who they believe was the cause of this attack”

    Stupid ppl believe all sorts of nonsense, shouldn’t the bar be a bit higher?

  31. I’d add “little collateral damage” to those three (now four). Still pick two.

    So with modern war the USA prosecutes it is always going to be slow and expensive unless the public gains a stomach for lots of collateral damage.

  32. MAD, they are all MAD I say. If a few drones can caused this level of destruction and so much disruption, how are you going to stop them?

    Mutual Assured Destruction. We bomb them, they drone the Saudi oil facilities, then the Kuwaiti oil facilities. Most of the world’s oil production comes out of the region, all of it within easy reach of Iran.

  33. Here you go. Here’s that sneeze…that stupid event in the Middle East that makes oil prices even more volatile. It has to be apparent to all the sooner we get off this stuff, the better. And think of the money we’ll save in taxes. We won’t have to garrison the Middle East anymore with our military, providing free security for the oil companies and their products.

  34. Modern war is like most other things. You can have it fast, cheap, or effective. Pick two . . . unless you wanted effective as one of your picks, then you only get one.

  35. He means we need to shut down the GPS system that all these long range drones depend on.

    Navigation should return to sextant and sundial the way nature intended.

  36. If we need fusion then we are in trouble.

    (And from context it would need to be fusion that is cheaper than current electrical supply tech, otherwise what’s the point?)

  37. I don’t know – we’re a long way down the path of attacking al-Qaeda, the Taliban and ISIS – it’s a bit late to start going after Saudia Arabia for 911…
    ….OHHHH, wait – did you mean IRAN?
    The region has plenty of monsters, you should be more specific.

  38. Two answers Fusion and electric vehicles. Pretty much every car magazine has said tesla is the best car ever made. Wish I could afford one ,especially when they start installing the million mile battery in them.

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