'New cold war' talk heats oil -- Oil rallies on weaker dollar, U.S.-Russian tensions

MarketWatch ^ | Aug. 21, 2008 3:04 p.m. EDT | Myra P. Saefong & Moming Zhou, MarketWatch

[Ernest_at_the_Beach]

Headline at http://www.marketwatch.com/

Crude tops $121 to close at a more than two-week high; natural gas gains

SAN FRANCISCO (MarketWatch) -- Crude-oil futures climbed above $121 a barrel Thursday to close at a more than two-week high, as the dollar fell against other major currencies and as tensions between the U.S. and Russia worsened.

[Ernest_at_the_Beach]

***********************EXCERPT from the article*************************

Tension flow

Meanwhile, tensions intensified between Russia and the U.S. after Washington signed a deal with Poland to position missile interceptors on Polish soil. Russia warned that this could fuel an arms race and said its response will go beyond diplomacy.

The response "conjured up visions of Russian armored columns clanking through the streets of Warsaw," said Michael Fitzpatrick in a research note issued Thursday.

"Such a scenario will not only further diminish the dollar, but also the euro as safe havens," he said.

Meanwhile, "Russia blocked the entrance to Georgia's main oil port, and Russia is showing that it can control Europe's natural-gas supply," said Sean Brodrick, a natural resources analyst at MoneyandMarkets.com.

[Ernest_at_the_Beach]

fyi

[marron]

In the long run, Putin is increasing American leverage. When people are nervous about Russia, they tend to answer our phone calls.

[SunkenCiv]

Thanks Ernest.

The Idiocy of Energy Independence [sic]
Townhall.com | August 20, 2008 | John Stossel
Posted on 08/20/2008 4:51:19 AM PDT by Kaslin
http://www.freerepublic.com/focus/f-news/2064810/posts

[frithguild]

So why do you think Russia has chosen to make all this trouble at this time?

[Carbonsteel]

"So why do you think Russia has chosen to make all this trouble at this time?"

Just a guess, but I would say they were sitting back to see if we would cave and pull out of Iraq prematurely. That didn't happen, so now they are putting themselves in a position to undermine our efforts in the middleeast.

[frithguild]

IMHO it’s simple - the Russians are pursuing a policy designed to keep the price of oil high. After all, they are oil producers. Follow the money man!

[Tax Government]

The only big thing about Russia is land area Every thing else is small: soul, aspirations, cooperative spirit, understanding of what success requires, population, birth rate, likelihood to exist as a nation in 1000 years.

[Marine_Uncle]

Their strategy to keep the price of crude high seems to be working quite well. If they are going to rebuild their military they need lots and lots of money.

[justa-hairyape]

Just a guess, but I would say they were sitting back to see if we would cave and pull out of Iraq prematurely. That didn't happen, so now they are putting themselves in a position to undermine our efforts in the middleeast.

No doubt. They were probably doing more then just sitting back however. Some intel states they pulled the massive stockpile WMD evidence out of Iraq and into Syria in the weeks before the war. Then their flying monkeys here in the states were sent out to beat the 'No WMD' drums. Basically Russia has come to the realization that their plans with Iraq, Syria and Iran are failing or on the verge of failing. Similar to when Hitler realized that his Italian allies were not up for the fight.