From Farrell: Russia's Power Play Could Shift Oil Flows:
There was a report earlier from a Turkish news source that Kazakhstan is considering moving its oil through Russian pipelines and not shipping it to Baku for transport through the Baku-Tbilisi-Ceyhan (BTC) pipeline.
Currently, Kazakhstan ships 500,000 barrels a day by tanker across the Caspian Sea to the BTC pipe and is half the capacity of that pipe. This is the pipe that goes through Georgia to Turkey.
This is only one of the "reassessments" we will surely see as former Soviet satellites consider the newly aggressive Russia and the events in Georgia and South Ossetia.
Read the full article.
From
Oil Falls on Global Woes, Stronger Dollar:
The European Union's economic statistics office reported Thursday [Aug. 14] that Europe's gross domestic product constricted by 0.2% in the second quarter of this year. Europe hasn't reported negative quarterly GDP growth in more than a decade.
The poor data from the Euro-zone means that four out of five of the world's largest economies are now alarmingly close to recession.
On Wednesday [Aug. 13] the U.S. Energy Information Administration updated its outlook on how the slowing U.S. economy is dampening domestic demand for petroleum products.
Read the full article.
From
Oil in Flux as Dollar Strengthens:
Crude oil prices look weak early Tuesday [Aug. 12] at the New York Mercantile Exchange on a stronger dollar, falling oil demand in China and a possible resolution to Russia's military engagement with Georgia.
The overnight performance of the U.S. dollar was mixed, falling slightly against the euro and yen while making a small gain against the British pound. However, the dollar is trending markedly upward, having advanced strongly against all three currencies over the past seven days of trading.
Read the full article. Plus, don't miss
Oil Sinks on EIC Demand Data (Aug. 12),
Oil Bulls Fret Weekly Inventory Data (Aug. 13) and
Oil Rises on Surprise Inventories Drop (Aug. 13).
From
Oil Sinks Despite Georgian-Russian Turmoil:
Today [Aug. 11] at the New York Mercantile Exchange, futures for September West Texas crude fell 75 cents to $114.45 a barrel, and Brent settled flat at $113.33 a barrel.
Russia's new full-scale war -- its largest military engagement since the dissolution of the Soviet Union -- was generally overlooked by most energy traders today. However, the long-term ramifications of the conflict could alter global oil supplies in a major way and will likely have a much larger impact on oil prices in the long run than will minor adjustments to U.S. GDP growth.
If the reports are correct, Russia is within 100 miles of assuming control of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline. The second longest oil pipeline in the world, the BTC pipeline carries oil from Azerbaijan 1,099 miles through Georgia and Turkey to the Ceyhan Marine Terminal on the Mediterranean Sea.
Read the full article.
From
Cramer: Oil's Fall Is Econ 101:
Nigerian rebels, Iranian saber-rattling, potential Israel-Iran war, hurricane warnings Turkish pipelines,
BP (BP Quote - Cramer on BP - Stock Picks) woes in Russia, all of these at one time have allegedly contributed to the strong oil price. Every time we rallied a couple of bucks, the usual suspects were rounded up and given credit for the rally.
And then the biggest
actual ruckus of all -- a war between major oil producer Russia and Georgia -- rages on, and oil cascades lower into the escalation. LOWER! If this incursion were to rank with the parade of horribles that allegedly spurred oil from $90 to $148, it would be off the charts. It is the real deal that can interrupt pipelines and cause a calamity in the European market. It should have sent natural gas -- the Europeans live off Russian natural gas -- into the stratosphere, as it should have caused hoarding and a spike even here for recognition that no liquefied natural gas could come here because it would be needed so badly in Europe.
So why didn't it?
Read the full article. Plus, don't miss this related video on
TheStreet.com TV: Cramer: Georgia's Not on Oil Market's Mind (Aug. 11).
For more recent "Wall Street Confidential" videos on oil, check out
Cramer: Stocks to Buy on Oil's Slide (Aug. 8) and
Cramer: Don't Buy Oil's Rally (Aug. 7).
From
Media Ignores Russia's Role in Oil's Decline:
Reuters, for one, had a headline about how "Cheaper oil may lift stocks" this week, with a lead that echoed the sentiment -- but guess what? Read the market summary article backwards and forwards and tell me if you see even the slightest mention of Russia's violent contretemps with Georgia.
The area is close to prominent oil pipelines and can potentially have a big (at the very least short-term) impact on oil prices. But Reuters, so taken by the trend in recent price movement, is blind to the new factor. Typical. At one point, it mentions "reasons to tread lightly," but then it starts talking about stimulus from the tax rebates fading. Not war. Not the nearby pipelines.
Read the full article. Plus, don't miss this related video on
TheStreet.com TV: They Just Don't Get Oil! (Aug. 11: Marek Fuchs skewers the business media for not mentioning the impact of the Russia-Georgia conflict on the oil market.)
Aug. 12:
Russia to Halt Georgia Military Operation
TSC Staff
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