Tuesday, February 22, 2011

As BP Prepares To Evacuate Staff From A Burning Libya, Commodities Are Exploding

Is this one of those "who could have possibly seen it coming" moments? As events in Libya overnight spiralled out of control, with dozens if not hundreds killed, the parliament buildng in Tripoli on fire, and output at one of the country's oil fields reported to have been stopped by a workers' strike, BP has said it will soon begin evacuating some of its personnel from the 9th largest producer of oil. And just to complete the total chaos, Iran warships are now going to pass the Suez on Tuesday instead of today, to the full glory of a fully open US stock market. The result: gold over $1,400; silver over $33.50; Crude front month over $93; Brent over $105; etc. Luckily, the US stock market is closed, meaning all this will be "priced in" by tomorrow, and the HFT levitation can resume tomorrow as if today never happened...

It's a matter of picking which middle eastern dictatorship falls next now... this means that the price of oil is set to skyrocket, any global recovery will be stopped in it's tracks and Israel may be tempted to launch preemptive strikes

No comments: