Oil Energy Money

With no recent supply shocks or strikes, record profits from the big producers like Exxon Mobil and flatline demand expectatons, it has been a quiet week in the oil markets.  This is good news for consumers as the price pb is barely hovering above $120 and should continue to fall given a steady market.

But Oil Energy Money doubts it will be too long before shocks, like Fannie and Freddie’s troubles, could send prices jumping and traders’ heartbeats racing. 

Surprisingly, the LA earthquake didn’t send prices higher amid stockhoarding concerns or logistic disruptions.  A more serious shaker could be the fallout from America encouraging western companies like Total and Statoilhydro to pull out of Iran.

The 70′s oil crisis was partly due to American support for Israel which upset Arab leaders enough to hike up prices.  Strong-arming Iran could lead to the same effect, or even worse given Iran’s strong links with non-Arab oil producers like Venezuela.

There are other considerations to keep in mind before expecting sub $100 prices again, and the market’s more likely to shoot back up than back down.  But while the sailing’s good and news is slow, stop by humour site Something Awful for a ‘Google Future’ look at an apocalyptic economy devastated by peak oil: Gas prices soar to three slave girls per gallon? Flying supermutants? General Motors considering hybrid automobiles?! Apocalyptic indeed…