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Iran Turns Embargo Tables: To Pass Law Halting All Crude Exports To Europe

Tyler Durden's picture




 

In what is likely a long overdue move, Iran has finally decided to give Europe a harsh lesson in game theory. Instead of letting Euro-area politicians score brownie points at its expense by threatening to halt imports and cut off the Iranian economy, the Iranian government will instead propose a bill calling for an immediate halt to oil deliveries to Europe. The move, with most reports citing the Iranian news agency Mehr, has come about in response to the EU agreement to impose sanctions against Iran, which were announced earlier this week. And why not? After all if Europe is indeed serious, sooner or later Iran will be cut off but in the meantime experience significant policy uncertainty, which is precisely what the flipflops on the ground need. The one thing that Europe, however is forgetting, is that all that whopping 0.8 Mb/d in imports will simply find a new buyer.Quickly.

So with China, India and Russia already having bilateral agreements with Iran in place, we are confident that said buyer will have a contract signed, sealed and delivered within an hour of the proposed bill's passage. Furthermore, as SocGen speculated, the fact that Europe will be even more bottlenecked in its crude supplies (good luck Saudi Arabia with that imaginary excess capacity), and which just may force the IEA to release some more of that strategic petroleum reserve (and thus give JPM some more free money on the replenishment arbitrage) will send Brent to $125-150 - something which Iran will be delighted by. That is of course unless some "experts" discover that Iran may or may not have a complete arsenal of shark with fricking nuclear warheads attached to their heads (despite what Paneta has already said) which gives the US the green light for a full blown incursion, which in turn will send oil over $200, and the world economy into a global coordinated re-depression.

From Spiegel:

"If this bill is passed, the government will be forced to stop selling oil to Europe before the actual implementation of their sanctions," said Emad Hosseini, spokesman for the Iranian parliament's energy commission, reportedly said. The bill is set to become law on Sunday.

 

The EU sanctions allow for oil deliveries from Iran until July 1. Any pre-empting of this timescale by Tehran could prove problematic for countries like Italy, Greece and Spain, who would need to urgently find new suppliers.

 

China, meanwhile, a major importer of Iranian oil, has also criticized the EU sanctions. The Xinhua news agency quoted the Chinese Foreign Ministry on Thursday as saying: "To blindly pressure and impose sanctions on Iran are not constructive approaches."

 

Many members of the EU are now heavily dependent on Iranian oil. Some 500,000 barrels arrive in Europe every day from Iran, with southern European countries consuming most of it. Greece is the most exposed, receiving a third of all its oil imports from Iran, but Italy too depends on Iran for 13 percent of its oil needs. If this source were to dry up abruptly, the economic conditions in the two struggling countries could become even worse.

 

Already on Wednesday, the International Monetary Fund (IMF) warned of the economic consequences of the EU's planned embargo. Stopping deliveries from the world's fifth largest producer could drive up the price of oil by 20 to 30 percent.

Perhaps instead of doing its best at crippling the world energy markets, and crushing the global economy, Europe should stick to bailing itself out, and other activities in which it has extensive experience.

 

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Fri, 01/27/2012 - 13:36 | 2102919 achmachat
achmachat's picture

lol @ it's not the American way. Who do you think is ultimately in charge in the US and the rest of the world?

Fri, 01/27/2012 - 13:38 | 2102933 Transformer
Transformer's picture

What?  Do you believe all that crap?

Fri, 01/27/2012 - 13:43 | 2102945 achmachat
achmachat's picture

i honestly don't think things happened exactly the way AJ says it, but there might be some shades of truth in that whole narrative. Let's say that I wouldn't be totally surprised if some underlying ideas behind those stories end up being true.

Whoever's in charge always knows more than what the large public is made to believe.

for all we know, both sides of the conflict could be having tea together and discuss an entire war in advance... to make sure they profit from it as much as possible.

Fri, 01/27/2012 - 13:48 | 2102982 LawsofPhysics
LawsofPhysics's picture

follow the money, truth is always stranger than fiction and the industrial war complex is like any other business in that they like to make money.  Now think about their lobbying power being second to only the banks and financial sector.  Finally, their business is war and they need wars to stay in business.

Fri, 01/27/2012 - 15:09 | 2103386 catacl1sm
catacl1sm's picture

Operation Northwoods, bitchez.

Fri, 01/27/2012 - 20:30 | 2104457 Money 4 Nothing
Money 4 Nothing's picture

Yup. Never forget your History.

Fri, 01/27/2012 - 20:35 | 2104474 Randall Cabot
Randall Cabot's picture

Alex Jones works for the jewish supremacists, his job is to blame everybody but them for the NWO.

Fri, 01/27/2012 - 15:30 | 2103377 matrix2012
matrix2012's picture

 

TRAGEDY AND HOPE: A HISTORY OF THE WORLD IN OUR TIME (1966) by CARROLL QUIGLEY

(pdf, 5.42 mb)

Somehow one of the most revealing books ever published slipped through the editorial of offices of one of the major publishing houses in New York and found it way into the bookstores of America in 1966.

Professor Quigley was an extraordinarily gifted historian and geo-political analyst. The insights and information contained in his massive study open the door to a true understanding of world history in the 19th and 20th centuries. It is a work of exceptional scholarship and is truly a classic. The author should have received a Nobel Prize for his work.

In 1961 Carroll Quigley published “The Evolution of Civilizations”. It was derived from a course he taught on world history at Georgetown University. "Quigley coupled enormous capacity for work with a peculiarly "scientific" approach. He believed that it should be possible to examine the data and draw conclusions. As a boy at the Boston Latin School, his academic interests were mathematics, physics, and chemistry. Yet during his senior year he was also associate editor of the Register, the oldest high school paper in the country. His articles were singled out for national awards by a national committee headed by George Gallup.

"At Harvard, biochemistry was to be his major. But Harvard, expressing then a belief regarding a well-rounded education to which it has now returned, required a core curriculum including a course in the humanities. Quigley chose a history course, "Europe Since the Fall of Rome." Always a contrary man, he was graded at the top of his class in physics and calculus and drew a C in the history course. But the development of ideas began to assert its fascination for him, so he elected to major in history. He graduated magna cum laude as the top history student in his class. [Introduction: Michael L. Chadwick]

 

Sat, 01/28/2012 - 06:39 | 2105214 Element
Element's picture

bit sus dude names carroll ... exspecular one wif no-bell prise

jus sayin

Fri, 01/27/2012 - 13:46 | 2102971 JFK.4PREZ
JFK.4PREZ's picture

What is the website that shows where all the US ships are docked/patrolling/war-exercising?  

Fri, 01/27/2012 - 14:06 | 2103116 lizzy36
lizzy36's picture

Alex Jones is a insane misogynistic side show.

Fri, 01/27/2012 - 14:15 | 2103168 NotApplicable
NotApplicable's picture

What's with this "our government" nonsense? Not only is it not "ours," but it is an abstract collective, incapable of action. All it takes is a few individuals in the right spots, with the rest of them just following orders by "doing their jobs," and any number of crimes can play out without a single person being held responsible, or even identified as conducting a conspiracy.

Look at JFK. "Our government" didn't murder him, but individuals operating within government (as well as outside of it) obviously conspired to take him out.

Sat, 01/28/2012 - 00:47 | 2104929 Seer
Seer's picture

"and our government would never do something so stupid."

You're basing this on what?  Even history would defy this statement.

The US got away with a HUGE LIE in invading Iraq because the folks pushing this know that ALL WARS are about resources, they KNOW that the "American Way of Life," as Cheney put it, "isn't negotiable," the US HAS to have oil; without oil it all crumbles, good as a direct military invasion, mass casualties.

Fri, 01/27/2012 - 13:33 | 2102909 carbonmutant
carbonmutant's picture

Embargoing your major source of capital is like shooting yourself in the foot...

Sat, 01/28/2012 - 00:51 | 2104934 Seer
Seer's picture

"Embargoing your major source of capital"

OIL IS capital!  Physical resources ARE something, everything else is a poser...

Sat, 01/28/2012 - 06:43 | 2105218 Element
Element's picture

Amen ... they don't call it black gold for nothing.

Paper evaporates to null universe hypothesis.

Not enough anti-matter to negate real material assets in this universe.

Fri, 01/27/2012 - 13:35 | 2102916 Jim in MN
Jim in MN's picture

OK, ZHers, eyes on

http://en.wikipedia.org/wiki/Hellenic_Petroleum

Which runs 3/4 of the refining capacity in Greece.  If they go dry, the country will burn down in days.

Celebrity tie-in!!!!!!!!!!!!!!!!!!!!!!!!!

Ownership of Hellenic Petroleum is still in large measure vested in:

http://en.wikipedia.org/wiki/Latsis_family

Paris Latsis (son of Marianna) was the former fiancé of Paris Hilton.

 

Fri, 01/27/2012 - 13:50 | 2102990 LawsofPhysics
LawsofPhysics's picture

The spice must flow.

Fri, 01/27/2012 - 15:49 | 2103558 Falcon15
Falcon15's picture

He who controls the worlds oil, controls the world. Lets tick off Middle Eastern oil producing countries and where they stand, shall we?

Saudi - "Friendly" with the US

Yemen - "Friendly" with the US

Kuwait - "Friendly with the US

UAE - "Friendly" with the US

Qatar - "Friendly" with the US

Iraq - "Friendly" with the US - after their leadership was destroyed and a puppet regime installed.

Lybia - "Friendly" with the US. See Iraq above (to be noted: the US has moved in 8000 troops to secure the oil refineries and processing facilities while the transitional governmnet is under attack by protesters. Hmmm)

Iran - NOT friendly with the US and the fourth largest oil producer in the world, and the second largest producer, after Suadi Arabia, in the region.

 

Things that make you go hmm.

Sat, 01/28/2012 - 06:48 | 2105222 Element
Element's picture

Nigeria - in dispute

Venezuela  - anti +10

South China Sea - Owner unknown ... probably the USSA

Fri, 01/27/2012 - 13:37 | 2102921 agNau
agNau's picture

Laugh now,
Just know PETA is on the way!

Fri, 01/27/2012 - 13:38 | 2102931 monopoly
monopoly's picture

Look, we are not cheering on Iran, we are not condoning their politics or the way they treat their people or the way they run their county. What we are saying is who the hell are we to tell other peoples what to do. Why are we so smart, so omnipotent to be able to forecast and advise others what we think is the right road to take.

All we are saying is, take care of US. Stop the bullshit that we are the world's super power and can change the rotation of the earth. It is over. We cannot police the world any longer and we can not dictate what a few imbecile govt. sponsors decide is right for all. Europe needs that oil. If they are stupid enough to listen to our politicians and allow sanctions then the other country can do the same.

Enough already of us always doing the "right thing". First lets get 47 million Americans off of food stamps and then maybe we can worry about others. And yes, I love my country. That is not the point.

Fri, 01/27/2012 - 16:16 | 2103638 Alpha Monkey
Alpha Monkey's picture

Maybe you missed the memo.... oligarchs don't have nationalities, just fortunes, pride, and power.  If our oligarchs decide america no longer supports their misdeeds, they will simply take their money elsewhere and with it, their power and toss our economy into the winds of destruction.  This is of course, after they have sucked  the economy of all of it's excess capacity, drained the public of their savings, and purchased state assets for pennies on the dollar to enrich themselves and their ilk.  That way it will be nearly impossible for us to restart without the "aid" from some devious organization like the IMF.  But first, I'm sure they'd work to ensure all of their debts are repayed, with interest.

Doing "the right thing" is not about doing anything right, it's about making people think we are doing something right... those people too busy to pay attention to reality or those refusing to face reality.

Sat, 01/28/2012 - 00:54 | 2104938 Seer
Seer's picture

Doing "the right thing" is not about doing anything right, it's about making people think we are doing something right... those people too busy to pay attention to reality or those refusing to face reality.

Golden.

Sat, 01/28/2012 - 07:03 | 2105227 Element
Element's picture

So how to undermine SDR's and make IMF irrelevant financially (beyond the practical fact that it is already.

All this dross must go.  All those scum-suckers must must be shunted into the gutter ... and yes, urinated upon.

 

PS  Please allow some licence for garbledness at this point, as I've recently invested in a bottle of Jim Beam, something I almost but not quite never do, and it is kicking in ... wot? ... can't tell the difference? ... give it a bit

Fri, 01/27/2012 - 13:43 | 2102956 navy62802
navy62802's picture

Poof! There goes Greece. The EU shouldn't have shown its hand like that. The weakest link in the EU chain was specifically cited as the reason for the delay until July. Hope they were able to figure out an alternative source of oil.

Fri, 01/27/2012 - 13:45 | 2102961 Peter Pan
Peter Pan's picture

Is this really about attacking Iran or is it about sending the price of oil to the heavens so that those that have placed their bets, can reap a shitload of profit?

Fri, 01/27/2012 - 14:22 | 2103213 NotApplicable
NotApplicable's picture

What's this? There's a cynic amongst us?

Fri, 01/27/2012 - 17:44 | 2103975 navy62802
navy62802's picture

It may be Germany's backdoor move to go ahead and finish off the Greek economy. Who knows?

Fri, 01/27/2012 - 13:45 | 2102964 non_anon
non_anon's picture

ah, the old tit for tat before war breaks out, tora tora tora

Fri, 01/27/2012 - 13:53 | 2103011 xela2200
xela2200's picture

I wonder what the response from Obama's administration will be. You know these European nations were only going along because Hillary was calling in some favors or what have you. The EU is going to come back to the US for some sort of action. Also, imagine if Iran cuts its oil to the US as well. Iran can do as much damage with finances as it can with any weapons. It is just one more step to war. The Saudis might be able to cover for a while, but even if they can do it forever. Do we really want to depend so much on the Saudis? And all this got started because of a bunch of whining Jews.

Fri, 01/27/2012 - 13:59 | 2103056 moonman
moonman's picture

We get no oil from Iran. Have you been sleeping since the hostage crisis?

Fri, 01/27/2012 - 14:11 | 2103124 xela2200
xela2200's picture

You mean not directly. Kind of like cocaine.

Fri, 01/27/2012 - 14:42 | 2103278 Money 4 Nothing
Money 4 Nothing's picture

We may not directly get oil from Iran, but they do run OPEC, not Saudi Arabia anymore.

Fri, 01/27/2012 - 15:07 | 2103382 xela2200
xela2200's picture

Add to that Russia another big oil producer and China the biggest consumer. Venezuela, another oil producer, friends with Iranians and buys guns from Russia. Through India into the mix. Now the US and EU have a block of countries that don't like their bullshit. The teams are been formed for the next ...

Sat, 01/28/2012 - 01:01 | 2104944 Seer
Seer's picture

Well, where have YOU been since the global economy has been active?

Global markets.  Shit just mixes in the total global mix and is then priced.  Someone withholding oil affects the global pricing, this DOES affect everyone!

Further, and most miss this point, disruption in one's customer/consumer base is problematic.  It's highly in the US's interests to NOT see oil excessively gobble up disposable income from its customer base, e.g. Europe: BAD for US exports!  These are the things that are the reason for the "joint" agreements to gang up on countries like Iran.

Fri, 01/27/2012 - 14:12 | 2103152 frostfan
frostfan's picture

Waaahhhhhhh!!!!!!!!!   It's the jooooooooooooooosssssss!!!!!!  Sniff Sniff!!!!!

Sat, 01/28/2012 - 19:10 | 2106068 Element
Element's picture

You realise the entire western world is fast waking-up to da oooooZe?

A lot of very pertinent and extremely damning factual material (like this gem) is being posted daily all over the inteRweB, and it is being archived on digital media, of every sort, and will keep coming back (i.e. oooze will never stop it, Pandora's box is wide open).

http://www.zerohedge.com/contributed/contrary-widespread-claims-there-no...

There's lots of very understandable, valid and proper interest in all this sort of stuff, and much notice being taken even by former sceptics of it (I was very sceptical of it too, many years ago) simply because it's reality can no longer be flippantly denied.  The avalanche of salient fact is just too overwhelming for denial to be taken seriously by an independently thinking person.

Even the deluded parasitic twerps in Govt Security Agencies who keep routinely spying on everyone, to keep us 'secure' (i.e. those remaining who are not actually ooze), can also not help but notice that it's profoundly fact-based, it's the awful ugly truth.

Do you think they don't notice this?

Even the 'public servants' are beginning to get a clue that they swallowed ooze bait and ideology.

People everywhere increasingly can see the financialist enCON's degeneration and collapse is due to shadow-bank engineering of the ooze.

So it's not as if you can hide it or pretend it isn't happening. 

The pSionist ooze are used to making others live in fear but we refuse to play your game any longer.

It's the pSionist global menace who will be possessed by a wave of fear, of what's to become of them ... because we now know.

I'd get a spaceship, a whole fleet of them (Krugman wreckCONs he has a few) and run like hell, because nowhere on Earth will be safe once the mean-reversion gets fully rolling downslope.

Fri, 01/27/2012 - 13:55 | 2103026 JohnFrodo
JohnFrodo's picture

The masters of the universe have correctly calculated various means of raising the price of oil outside of traditional supply and demand issues. The coup d gras was the Iraq war, raised the price to $100 a barrel forever, at the same time gained control of the 3rd largest reserves plus potential. Iran is the next trick.

Sat, 01/28/2012 - 01:08 | 2104952 Seer
Seer's picture

"The masters of the universe have correctly calculated various means of raising the price of oil outside of traditional supply and demand issues."

What about the FACT that it's been significantly suppressed/subsidized for decades?  Maybe, as everyone who clamors for killing subsidies would agree, that this all results in a more normalized valuation?

Raising, lowering... doesn't make a fucking difference.  What matters is affordability.  As wages plunge and job losses rack up people will not have the money to spend on this shit.  But, if it's the conspiracy that you suggest (yes, people fuck with markets, you can't walk past one without causing _some_ sort of disturbance; and, well, welcome to "free trade"), then one would have to ask what's the real gain?  Yeah, it's fun fucking with people to the point that they come after you with guns?

Reality check: finite planet; oil is incredibly valuable; our world is pretty reckless/wasteful (thanks to markets and their ability to program people to buy shit they don't need or want); yeah... fucking surprise, NOT...

Fri, 01/27/2012 - 13:59 | 2103055 falak pema
falak pema's picture

that table says it all, EU zone is non critical to Iran. Lets move on. From geopolitical point, CHindia will have greater influence in ME, where along with Irak down the road, TWO major ME producers and exporters will move out of Western coupling into Eastern coupling. Which will now be an increasing and fast growing trend for commodities and for money lines, marginalising the USD and EUro usage for these zones. 

The lynch pin is Saudi in US construct, along with UAE, Qatar, Kuwait. The west's golden circle will get smaller, in ME and Euro zone will rely more on Russia/Central Asia ex soviets in the future, via Turkey, whence the big moves of Western oil majors to wedge into that market which requires 700 B of investments in oil/gas sector according to multilateral sources.

 

Sat, 01/28/2012 - 19:19 | 2106130 Element
Element's picture

You only have to compare western 'growth' with the rest of the world's 'growth' to realise that the West, in the form US-NATO dominance on behalf of the Red-Shield's geoplitical interests, is a mere shadow and parody of what it once was.

Fri, 01/27/2012 - 14:01 | 2103073 847328_3527
847328_3527's picture

Utterly shocking,...how dare they disturb the noble classes of Western Civilization with such an impudent move! The MENA Hoi Poloi...oh my...what shall we do with those backward savages....

 

EU may need to learn to savor their Tea and Crumpets cold for a change. From what I understand Brits don't prefer iced tea.

Fri, 01/27/2012 - 15:58 | 2103586 Alpha Monkey
Alpha Monkey's picture

Nope, they like it hot and it's like crack to them...

Fri, 01/27/2012 - 14:02 | 2103075 DeltaCharlie
DeltaCharlie's picture

Never fuck with a civilization that invented chess!  

Fri, 01/27/2012 - 14:47 | 2103303 mick_richfield
mick_richfield's picture

That's right. 

India.

Fri, 01/27/2012 - 16:02 | 2103597 Falcon15
Falcon15's picture

It was the Persians who adopted chess and spread it to the world. They took the rules and refined them. They were playing chess in their castles when Rome was a couple of mud huts on the Tiber.  We know for certain the name “chess” is derived from the Persian word shah, meaning “king.” And we know that “checkmate” is derived from the Persian shah mat, meaning “the king is dead.”  they may not have invented the base game, but they refined and mastered it more than 3500 years ago.

Fri, 01/27/2012 - 14:08 | 2103127 JPMorgan
JPMorgan's picture

Oil for gold, oil for rupees, oil for yuan.

I think the US just scored a home goal.

Still... I wouldn't rule out a preemptive strike on Iran out of US backed Israel.

Fri, 01/27/2012 - 15:57 | 2103582 Alpha Monkey
Alpha Monkey's picture

I wouldn't either.  We seem to be well positioned to "assist" in their assault.

15000 troops to Kuwait (Jan 13, 2012)

12000 troops to libya (Jan 19, 2012)

A plan to deploy "thousands" of troops to Isreal by October

This map seems to show that Iran is almost completely surrounded by US military forces. 

I wonder if the use of gold as an international trading money will hasten the timeline of attack.  Can't let the world see that there are alternatives to a dollar driven global economy. 

Hyperinflation is going to suck :(

Fri, 01/27/2012 - 16:19 | 2103650 Falcon15
Falcon15's picture

The reverse sanctions will definitely get some reaction, immediately, from Europe. Time will tell. False Flag?

Fri, 01/27/2012 - 16:43 | 2103733 Alpha Monkey
Alpha Monkey's picture

False Flag?

Sounds like the status quo I know.

Sun, 01/29/2012 - 00:21 | 2106648 Element
Element's picture

Sounds more like 1-month before a white hut election ... in the middle of dah mass-debates.

Op-ticks bitchez

Fri, 01/27/2012 - 14:10 | 2103141 frostfan
frostfan's picture

What a meaningless declaration.  They'll just sell it black market to Turkey and it will still end up in Europe.

Fri, 01/27/2012 - 14:23 | 2103216 NotApplicable
NotApplicable's picture

It's not meaningless for whoever gets paid.

Fri, 01/27/2012 - 15:39 | 2103521 Alpha Monkey
Alpha Monkey's picture

In my experience, black market prices are a bit more expensive... due to that increased risk thing and all...

Fri, 01/27/2012 - 23:43 | 2104860 ucsbcanuck
ucsbcanuck's picture

Unlikely as Turkey is part of NATO.

They'll sell legally to Russia, who will then mark it up and sell it to Europe. The supply lines to Russia avoid the Gulf. Explains why Russia and Iran conducted swap deals.

Alternatively, Russia will buy Iranian oil and mark up their oil for Europe. 

Check out the article below - 2 years old but you can see what's been happening over a period of time:

http://www.globalresearch.ca/index.php?context=va&aid=16932

US and EU are being outplayed by Russia and China over Iran. However EU is dependent on Russia for energy supplies, so it can't push Russia too hard.

Fri, 01/27/2012 - 14:34 | 2103246 DrunkenMonkey
DrunkenMonkey's picture

Mossadegh's revenge !

Fri, 01/27/2012 - 14:35 | 2103252 Bansters-in-my-...
Bansters-in-my- feces's picture

Maybe Fitchs should high five Iran......

Thumbs up.

Fri, 01/27/2012 - 14:41 | 2103274 SilverArrow
SilverArrow's picture

After securing oil exports to China, Russia, India and Pakistan, Iran can finally strike back at the ridiculous western sanctions. Iran giving a big finger to the West. Go Iran Go.

Fri, 01/27/2012 - 14:43 | 2103286 Dingleberry
Dingleberry's picture

seriously, how long has this shit been going on? 5 years now?  I believe this is one big continuing and endless charade of "crisis after endless crisis" to keep oil propped up to 100 bucks.....otherwise start fucking bombing somethng already. I am sick of hearing about this shit. 

Sat, 01/28/2012 - 01:22 | 2104972 Seer
Seer's picture

And WHAT are YOU doing?  Sitting on your ass commanding others to spend yet other's money to do YOUR bidding?

Well, I'm sick of fucking heartless statements like yours.  Bring it around my property and I'll assure you that I won't be getting someone else to do MY bidding.

Fri, 01/27/2012 - 14:45 | 2103297 mick_richfield
mick_richfield's picture

I think that if Iran resolves to stop selling oil to Europe, and if Europe resolves to stop buying oil from Iran -- then the situation has become completely intolerable and war is the only answer!

 

Fri, 01/27/2012 - 14:54 | 2103343 Sandy15
Sandy15's picture

Wouldn't such comments normally send oil up 2 - 3 dollars in a day?  Markets are so controlled by the government/FED.  We no longer have a real market that reacts to world events or economic data.

Fri, 01/27/2012 - 15:46 | 2103547 frostfan
frostfan's picture

Normally yes but the world is getting tired of insert Iran/Venezuela/Nigeria/otherBanana republic jacking up the price of oil with their temper tantrum of the day.   I think the better answer lies in the WSJ today where outstanding Crude contracts are down 19% meaning a lot less speculators to play on.

Fri, 01/27/2012 - 15:10 | 2103391 Nachdenken
Nachdenken's picture

Most of the scenario outlined so far - Israeli sub sinks USS Enterprise, releases radiation hazard in the Straits of H, and all that floats and fleets along it, oil ranges twixt 30 and 200 USD per barrel over two years, China, India and Russia have oil the oil they need, Greece legalises bicycle swaps for German cars, lets see, and our gold positions are all running to sweet infinity.  On a silver lining. Have not even begun to play chess,  just love the way your pawns move.

Fri, 01/27/2012 - 21:39 | 2103984 Randall Cabot
Randall Cabot's picture

Right. And all that nuclear waste from the Enterprise's reactors is on the bottom of the Persian Gulf and is Iran's problem.

Fri, 01/27/2012 - 15:15 | 2103414 andyupnorth
andyupnorth's picture

All the money printing in the world can't stop the demography-induced deflation.

However...

Making several oil-producing countries stop exporting their cheap energy to the West is a GREAT way to increase the cost of living on the Western Peasants, thus keeping the Bankster Elites solvent in their massive ponzi scheme.

The flip side is that Indo-China will have plentiful cheap energy that will spur their economies.

So is the best strategy to invest in places where energy is cheap?

Fri, 01/27/2012 - 15:32 | 2103489 Calmyourself
Calmyourself's picture

Good luck, may as well pass a law that says oil is not fungible..

Fri, 01/27/2012 - 15:37 | 2103509 lolmao500
lolmao500's picture

If Iran is not stupid, they already have their own oil fields rigged to blow up if they get invaded/bombed.

Fri, 01/27/2012 - 16:23 | 2103570 The Count
The Count's picture

Who else believes the military industial complex in the US is completely out of control. Case in point, attack on Lybia without ANY congressional discusson or approval. With the help of the spooks and black budgets these guys have totally taken over our country. The last guy to take on the spooks and the FED was JFK. We all know how that ended. Of course, the sheeple in the anything but top top positions still believe that they are protecting freedom and liberty. Thats why purist Ron Paul will win the presidency, right?

Yeah, right! We will have the choice between black Obama and Romney, a white Obama. 

Fri, 01/27/2012 - 15:59 | 2103588 rsnoble
rsnoble's picture

Well looks like the US got the EU in one fine mess.  Looks like us taxpayers are going to get screwed really good on this one. Oh well, I can't pay back my part of the national debt anyhow so whatever.

I can't really say I blame Iran one damn bit.  The US has already blown up everything around them and killed over a million people.  I'm sure they might be just a little bit paranoid by now.

I have doubts on all this going per elites drawing board.  I think the Amero was real for one, just one of many reasons they are hell bent on getting the net under complete control because we are on there ass every step of the way.  Which in another aspect is unfortunate because they're all crazy and have the attitude "if I can't have it all no one can" and it's hard telling what crazy ass shit is going to happen.

Fri, 01/27/2012 - 16:20 | 2103653 zangs
zangs's picture

All the goings-on in the world are like a giant chess match, and I'd be very surprised if Europe hadn't thought more than 1 or 2 moves ahead.  Does anyone really think TPTB haven't figured this move by Iran into their calculations?  Me thinks not...

Fri, 01/27/2012 - 16:48 | 2103765 andyupnorth
andyupnorth's picture

TPTB have their motives.  See my comment above.

Fri, 01/27/2012 - 16:31 | 2103688 bigkahuna
bigkahuna's picture

embargo on.......who run bartertown?

Fri, 01/27/2012 - 16:50 | 2103776 Falcon15
Falcon15's picture

Mahmoud-blaster run barter town!

Lift embargo.
http://www.youtube.com/watch?v=Hgq4w4dqKsU

Fri, 01/27/2012 - 17:45 | 2103977 sgt_doom
sgt_doom's picture

I can't help but recall that GE had ongoing contracts with Iran which the halted in 2005, but didn't actually run out until 2008.

Now, since Jeffrey Immelt is President Obama's jobs czar, and Obama supposedly is concerned about our jobs, I think the secret history of GE below may be appropriate:

SECRET HISTORY OF G.E

During the economic meltdown of 1892, JP Morgan, that plutocratic parasite, engineered the takoever of Edison Electric, the company of America's most prolific inventor, Thomas Edison, along with Edison's electrical patents.

JP Morgan also scammed the brilliant inventor and father of our electrical grid, Nicholai Tesla, out of the majority ownership of Tesla's patents!

Morgan effectively ended the inventing careers of both Edison and Tesla!

In 1985, Jack Welch began a program of massive offshoring of GE's tech jobs: engineers, programmers, R&D scientists, etc., and over the next decade restructured GE into a private equity firm and hedge fund of hedge funds.

Today, GE only exists because they were given TARP bailout funds.

I guess that's why GE's CEO, Jeffrey Immelt, is President Obama's advisor?

 

Fri, 01/27/2012 - 17:47 | 2103985 straightershooter
straightershooter's picture

Some sagacious (wo)men out there, please kindly help me out.

 

Europeans ordered that the crude oil from Iran be embargoed, but not natural gas from Iran.

What makes Europeans so arrogant that Iran would not embargo natural gas to the Europe, and let europeans either freeze to death by nature or screw up to death by Russians.

 

Fri, 01/27/2012 - 20:29 | 2104396 hardcleareye
hardcleareye's picture

Here is a link to the EIA for Iran gas production. NG not exported, domestic use, Iran is a net importer of NG, Looks like they might be bringing some production on line that will allow them to export in 2015...  not sure if these joint venture projects with the Russians are on schedule...

http://www.eia.gov/countries/country-data.cfm?fips=IR

edit, 2010 data, looks like more production has come on line since, there have been some exports to Turkey and maybe other countries?? but it is difficult (so far) to determine real hard NET numbers for 2011...  (not self reporting from Iran information lol...)

Fri, 01/27/2012 - 18:54 | 2103999 BlackholeDivestment
BlackholeDivestment's picture

http://www.youtube.com/watch?v=vWuQVpBeqLs 

...who is Cyrus (the anointed). Lol. http://www.youtube.com/watch?v=06gsgZUe32s&feature=BFa&list=PL6D7022ADADB27DBE&lf=results_video

http://bible.cc/isaiah/45-1.htm

Get it? ''anointed with oil''. Lol. 

http://www.biblegateway.com/passage/?search=Revelation%206:%206&version=KJV

 

On a side note: ...it is interesting, to say the least, that the Ayatollah of Iran ascends every year (up to the Farrakhan's and Krugman's Mothership ? http://www.youtube.com/watch?v=dtiVP-E2eFI  ) to do council with the Imam Mahdi (also known as Dalai Lama's Maitreya http://www.dalailamainaustralia.org/news/detail.aspx?ArticleID=222 ) whom has instructed Iran to continue it's nuclear work, because it is part of this Muslim Messiah's mission to bring peace to the world because it will cause or force the Imam Mahdi to show up. Lol. http://www.wnd.com/2012/01/iran-preparing-now-for-armageddon/ 

If anyone thinks this generation is going to escape the cataclysm being created right now, considering the fact that Iran has been put into a corner by the same powers that have put the entire global economic system into, well, get over it. This generation will not escape it's own judgment.

Fri, 01/27/2012 - 18:55 | 2104153 covert
covert's picture

nuke iran and arabia! oil would be a real glowing commodity then!

http://covert.mypressonline.com

 

Fri, 01/27/2012 - 22:53 | 2104767 BlackholeDivestment
BlackholeDivestment's picture

...Covert, lol, ...uh no. Did you not take into account ''The Final Jihad'' playbook? You know, the one written about blowing up the FBI Murrah Federal Building in Oklahoma City? You know, that book that is dedicated to the ''Knights of the Secret Circle'' the one written two years before the building was blown up? Did you not learn anything the first time they blew up the World Trade Center in 1993, when yet again, exactly like Oklahoma City, the FBI handled another informant they had on the inside and allowed the supply of explosives to blow up and slaughter Americans yet again? Did you not learn from 911? Did you not learn from the child sacrifice to Moloch?

...there is nothing you can do to stop bastards that are willing to murder their own people in order to win the support of the people they just murdered in order to complete their objective. These bastards justify the murdering of their own people in order to save their own people. That is a fact. Do not even try to say it is not true, it is the case and it has already been proved to be an effective tactic and that is beyond the shadow of doubt. These bastards have no intention of doing harm to their own objective, like blowing up nukes in the oil fields they mean to secure. They do welcome any sort of event to happen on U.S. or Europes ground, be it a reaction after any move on their part or any attack that comes from the likes of Iran prior to a U.S. reaction.

That's just the way it is, Covert. Lol

Fri, 01/27/2012 - 18:03 | 2104021 GCT
GCT's picture

Obviously some folks still believe all the hype and bullcrap the media and politicians feed them.  I used to do that as well.  There are many times I wanted to register here and start yelling at the top of my lungs calling some of the people posting here names.  I wanted to tell them they were blind ignorant people that need to leave our country.  I love the USA.  But I did not register until last year (been ah here reading since early 2010).   I suggest you start cross checking some of the commentators here like I did and you will find alot of what is stated is correct.  Instead of getting all emotional and all patriotic take the time to digest what they are writing.  You will find alot of it is the truth.

I often times wonder what would happen if a foreign country assasinated one of our scientitsts ?  I wonder what would happen if we had another country trying to make us do things their way.  Do you thinlk it is ok because our politicians said so or  it is ok for American to do this?  If you do you have a problem.  Do you think Isreal is always correct because they are the chosen people?  If you cannot look at some comments objectively you came to the wrong site. 

This bunch is ruthless.  I do not post here often but some of you are so closed minded and so clouded with the party line.  Free yourselves and you will actually see what is happening.  Study some fricking history as we always repeat the same ole stuff.  We are repating the same mistakes right now that happened during the great depression.  Things are not Ok and America is interveneing where they have no place to intervene.  This is all about oil and our reserve currency status.  Iran actually did a smart thing calling Europe's bluff.  Never thought I would type this.

Wake up for crying out loud.    Your being robbed and praising the fools stealing from you.

Fri, 01/27/2012 - 18:25 | 2104053 Hannibal
Hannibal's picture

Call your oponents' bluff playing poker, while remaining 'THE MASTER OF YOUR DOMAIN-IRAN" takes balls, HUGE balls!

Next: FALSE FLAG anyone?...http://www.youtube.com/user/JanRichardus?feature=mhee#p/f/0/Ufdw21ltc-8

Fri, 01/27/2012 - 20:19 | 2104403 DymanicDoug
DymanicDoug's picture

Israeli subs manufactured by Germany, a deal consumated after arab's killed Isreaeli olympians on Germanys watch...Our Navy tracks these diesel weapons, very very closely out of Turkey..very very quiet, nuc's??...they are in a word Isreals MAD to all enemy's...dont see them in the gulf of hormuz...but stranger things have happened...Stunning is the complete lack of leadership that would let Europe get into this situation...and silence from Americans as the facists prepare for more war..AS IF there are ANY innocent civilains in this country...people and governemnts get what they desirve..wishfull thinking aside

Fri, 01/27/2012 - 22:09 | 2104700 cristo
cristo's picture

that's a smart move on their part .Why sell them the fuel to propel their war fighting equipment that european nations will use to attack iran .It's like a rober threatening the gun store he will no longer buy his bullets from them in 5 months from now .

Fri, 01/27/2012 - 23:52 | 2104873 BlackholeDivestment
BlackholeDivestment's picture

Keep in mind, Fukushima is a prime example of just how nuts our world is. The fact that anyone would want to build another stupid nuke plant, muchless right on the ocean front beach of Fukushima, on an active earthquake faultline should be enough to make people realize how nuts things are, ...or has no one noticed the quakes happening around the world in places like Iran etc...? Lol. Iran has a bunch of oil etc... and not to mention it has a lot of Sun to work with. What the hell are these dipshits doing? Let it go already. Lol. The fact is this crap is all about Israel and Islam at war over the land of Israel. This will not be resolved until they both blow up the whole world. Both Israel and Islam have the same basic theme, they both reject our Father in Christ, and that means the Son of Man or Son of God does not represent Israel or Islam. This means all humans will be sacrificed, as martyrs of Islam or Israel or we, the rest of us, will be slaughtered as needed for their objectives until their Messiah returns. That is a fact. That is called feeding the beast until the beast has consumed enough humans ...to the point in time where there just is not enough salt and mercy ( or people who have enough influence to keep these fools from slaughtering people that actually accept the offer of mercy and forgivness) to preserve our world against their efforts to reach their goal. 

It does not matter if you accept the fact that this is what they are all about, or if you do not realize the fact that the global economy mess we are in has everything to do with the effort to try and establish a secure world for Israel and all the nations, including the Islamic nations. The leaders behind the United Nations effort to establish the new world order peace among all nations and Israel, and a stable global economic system from the current crisis they have established through corruption etc...  they do know what they are doing. They are under the strong delusion that their efforts have been the right way to go. If the people try to stop the leaders at this point in the game it will not stop what is already in motion, Get over it. Fear not, stand fast and do no harm.

Sat, 01/28/2012 - 01:35 | 2104996 Inibo E. Exibo
Inibo E. Exibo's picture

When you take on the people who invented chess you better be up on your game.

Sat, 01/28/2012 - 02:27 | 2105047 nah
nah's picture

how many iranians does it take to screw europe over a single barrel of oil

Sat, 01/28/2012 - 10:02 | 2105356 supermaxedout
supermaxedout's picture

Its the US forcing Europe to boycott Iran.

So its the US who has to take care that the most affected EU countries (number 1 Greece !!!! since nearly all their oil imports come from Iran.) do get adequate substitute deliveries from Saudi Arabia. Otherwise these countries will give a shit on the US embargo and simply continue to buy, what else could they do. This is going to split-up Nato once more.

My opinion is, that the US strategy forced upon Iran has the welcome side effect that it is destabilzing Southern Europe. First of all Greece and second Italy. Italy lost Lybia as a cheap and reliable source of excellent crude and natural gas. This was achieved by Nato troops under UK and Sarkozy command.  The US is fighting wars on many fronts and one mayor operation is to destabilze the EU, trying to  eliminate the Euro, thus forcing Europe back under the US Dollar roof.

The other effect of the embargo of the Iran should be rising crude prices.  This is exactly what the US wants even it is a very desperate strategy.  Rising crude prices would mean the world needs more US Dollar for the crude bills to pay. Thus China and Europe could be much more willing to increase the value of the Yuan or the Euro compared to the US Dollar. Because this would help them to pay their oil bill easier at first.  But it would soon have the devastating effect of a very strong inflation for several years in Euroland and China.

As it appears  to me, the US administrations biggest problem is to spread (export) succesful all their newly printed US Dollars to the world. This has to be achieved by all means otherwiise the system crumbles in a not so far future.  It looks like that this is more important even than the "real" US economy  which would be hard hit too by rising oil prices.  Seems that is taken in consideration and accepted.  Important is, that the system is saved that is all what counts.

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