[Cicero]

Well, the NATO attack on Libya has put an end to oil exports until the violence ceases. But I wouldn’t be any too confident that it will lower oil prices in the long run.

The country will be taken over by Muslim terrorists who hate America and the West. Alternatively, the country will break down into civil war among the various tribes, who have little love for each other.

[SAJ]

Exactly. If the Muslim Brotherhood types take over -- and I'll take 3-1 on on that proposition -- any drop in overall price levels of crude will be short-lived.

However, a better way to trade crude will at that point be known. Buy WTI (NYMEX) crude futures and sell Brent (EuroNext) futures. Why? Libyan crude is a proxy for Brent, which is now trading some $22/bbl over West Texas. The jihadi types WILL have to export to pay their bills, and the mkt will transfer a considerable amount of demand to the more reliable suppliers. Or, in plain English, WTI will gain in price on Brent.

Good trading to you!

[tacticalogic]

The country will be taken over by Muslim terrorists who hate America and the West. Alternatively, the country will break down into civil war among the various tribes, who have little love for each other.

I still think Al Qaida traded Bin Laden for Libya.

[jonrick46]

Spot on! It only took nine posts to nail it, which is a credit to you who responds to the need to post the truth.