CNNMoney: America Is Holding the Lid Down on Global Oil Prices

Wednesday, 13 Aug 2014 07:14 AM

By John Morgan

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
When Middle East tensions boil over into violence, the world is used to spiking oil prices as a result. Not this time.

Even with violent chaos in Iraq and Syria that appears ready to spread, oil prices are acting benignly for a variety of reasons, according to CNNMoney.

On the global market, crude oil is still trading under $100 per barrel, and the average price for gas in the United States is $3.48 per gallon — less than it was a year ago.

Editor’s Note:
New Warning - Stocks on Verge of Major Collapse

"It's a notable phenomenon considering that the United States is engaged in an open-ended bombing campaign against extremist militants in an oil-producing country," CNNMoney said.

Tom Kloza, chief oil analyst at GasBuddy.com, said most Iraqi oil comes from the south of the country that so far has not been involved in the fighting against the radical Islamic State of Iraq and Syria (ISIS).

U.S. airstrikes against ISIS have also had a calming effect by containing the threat from the violent group, according to Phil Flynn, an energy analyst with the Price Futures Group.

"They're not going to be able to compromise oil supplies while they're dodging bombs left and right," Flynn said. He said a hike in global oil production has also helped to contain prices.

But CNNMoney said the biggest reason for the non-volatile reaction from commodity markets to Middle East bedlam is rising U.S. energy production. Government data showed America produced more than 13.6 million barrels of oil daily in the second quarter of 2014, up 50 percent from the year-ago period.

"That's helped provide a nice cushion for oil prices in the face of geopolitical tension in Iraq and beyond," CNNMoney said.

Kloza said that if not for the Middle East problems, gas prices would be even lower at this point because of booming U.S. production.

The International Energy Agency (IEA) agreed higher U.S. energy production is helping hold the line on global oil prices, Reuters reported.

While the IEA said the security of some major oil-producing countries "remains more at risk than ever," in its latest report it concluded oil supplies are relatively abundant. The Organization of the Petroleum Exporting Countries has raised output to a five-month high of 30.4 million barrels per day.

"Despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected, with an oil glut even reported in the Atlantic basin," the IEA report said.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

Related Stories:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Bass: World's Central Banks Are Going Their Separate Ways

Wednesday, 22 Oct 2014 20:51 PM

Central banks, which have been easing in unison since the financial crisis began six years ago, are now starting to brea . . .

Stocks Decline Amid Price Data as Oil Tumbles to 2-Year Low

Wednesday, 22 Oct 2014 17:06 PM

U.S. stocks dropped, halting a four-day rally, while the dollar advanced as the cost of living in America unexpectedly r . . .

Bank of America Customers Double-Charged in Apple Pay Snafu

Wednesday, 22 Oct 2014 16:52 PM

About 1,000 Bank of America Corp. debit transactions made using Apple Inc.'s new mobile-payment system were mistakenly d . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved