Friday, August 22, 2008

Oil surges above $120 as tensions rise

Which of course leads to increased tension everywhere else (especially the suburbs).
clipped from

Oil and gold prices rose above $120 a barrel level on Thursday fuelled by mounting geopolitical strains after Russia responded angrily to a missile shield agreement between the US and Poland amid continuing tensions following the war in Georgia.

Russia said it would respond with more than a diplomatic protest to a deal to place part of a US missile defence system in Poland.

Moscow has also made it clear that it has no intention of bowing to Nato’s calls for a withdrawal to the positions its forces held before the invasion of Georgia.

Market speculation has been rampant that Vladimir Putin, Russia’s prime minister has been infuriated by the US and European response on Georgia and has ordered oil exports to be reduced.

The Energy Information Administration repeated its forecast that oil prices would trade in a $120 to $130 range for the rest of the year.
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