I fail to see any reason why oil prices should shoot up because of an embassy closure
because the market is driven by speculation and fear.
Update 22: Oil Prices Top $64 a Barrel in New High
It's not the fact of an embassy up shop for security reasons, it's the entire nation where the American embassy is located, which happens to be OPEC's #1 producer & exporter of Persian Gulf based crude oil.
There are scores of other factors, very real concerns over global Islamic terrorism, and whom shall be it's next victims. Nuclear Iran, OPEC's #2 crude oil exporter is on my mind for a future showdown with US, Israel & maybe some of our other allies (if they not to interlinked to Iranian oil supplies), resulting from the fanatical Muslim mullah's insistence on gaining an arsenal of offensive nuclear weapons. Think of a pack of rabid Jr Khomeini's, with their finger on the nuclear button(s).
Some energy traders just might have some of these & other concerns on the back or front burner when buying long within the entire energy complex.
Probable disruptive, global energy supply threats, tend to make that commodity very volatile, triggering upward jolts in price.
Recall, the oil markets are always thinking about the next season and one coming up requires heat via heating oil & natural gas. Will we have sufficient supplies? That's one of the pressing questions.
Here's a few more interconnected issues, besides the funds speculating picking up purchases of large blocks of open interest.
The lack of sufficient refining capabilities for reformulated unleaded gasoline products on an interstate basis. Will inflation really begin to hurt the overall economy resulting from the present bullish energy trending? How long will the housing boom continue at the current pace? How about interest rates climbing further. The U.S. Dollar verse other major currencies & on & on & on.
Bullish crude trading is not just about the securing of a US government building in oil rich Arabia.
As I post this NYMEX September crude is quoting @$64.17