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Bold Moves by Iran Will Push Oil Prices Higher
Dear Reader:
I am more convinced than ever that Tehran wants to take over Washington, DC and push its own agenda here in the United States. I’m not sure if that would be such a wise move, though, considering Iran is the fourth largest exporter of oil in the world and the last time I walked on Pennsylvania Avenue, I didn’t notice any drilling rigs in place.
Of course, the lead coming from the water pipes may be perceived as oil, but that’s a story for another time.
Tehran announced that they will hold a press conference at 8:30AM EST to let the world know they have no intentions to stop its country’s uranium-enrichment program.
At 8:30AM EST!?! I guess the Iranian government thinks it’s the Commerce Department.
Schedule is Intentional
Do you know what this is going to do to oil futures trading at the NYMEX? It’s going to push them higher, even though everyone already knows what the Iranians were already going to do.
These actions are further evidence of how clever the Iranians really are. Today’s deadline is self-imposed. As a matter of fact, the U.N. asked for a response by the end of the month. But the end of the month is a Thursday before a long holiday weekend.
No, Iran figures to release this information this week—on a Tuesday—at 8:30AM…New York time! They’re no fools!
Had they waited until next week, the news would have slowly dropped to the back pages as most traders would’ve left for the long final summer weekend in the Hamptons. Tehran carefully chose today because they know the price for a barrel of crude will jump on this news and will follow-through till the end of the week.
Higher Prices Mean More Money for Terrorists
And, what do higher oil prices mean for Iran? Well, it means more revenue for the country that can then pass it on to Islamic extremists groups to fight their “holy” war. An enviable business model.
Forget the comments about potential nuclear bombs or scud missiles heading for the U.S.; the new weapon for the Iranians is oil. Now, Iran is dictating the price for oil and using our media to exploit concerns over supply.
Because of the nonsense coming out of Tehran this morning, oil will spike due to the fear that the Iranians may squeeze supplies. And, considering the world requires 84 million barrels a day to survive—and is only pulling 85 million barrels a day out of the earth—any near-term supply disruptions will cause a spike in the price for a barrel of crude and higher prices at the pump.
Sincerely,
Todd M. Schoenberger, Senior Equities Analyst
The Diligent Investor
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