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Oil Surge Begins

By: capt_nemo in ROUND | Recommend this post (0)
Mon, 05 Dec 11 6:44 PM | 56 view(s)
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Submitted by Tyler Durden on 12/05/2011 09:00 -0500

Crude
European Union
Global Economy
Iran
Israel
Kuwait
OPEC
Reality
Recession
Reuters
Risk Premium
Uranium

Just as Europe seems destined to tip into recession and the US growth miracle decouples its reality from perceived global slowdowns, the oil market steps in to balance the equation. With WTI breaking $102 and Brent over $111 this morning, driven by Iran and Syria tensions, it would seem tough for a nation exporting its way to success, that is so dependent on both domestic consumer and energy to grow 'as expected' with energy premia so high - or perhaps the justification is the energy sector will carry the S&P through the next quarter as earnings expectations are cut. Nevertheless, as Reuters points out, the risk of supply disruptions remains high.

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