Archive for July 30th, 2007

Oil And Bible Prophecy by Todd Strandberg

Monday, July 30th, 2007

Oil prices are nearing all-time highs. The news of faster-than-expected economic growth had light, sweet crude for September trading at $77.02 a barrel on the New York Mercantile Exchange. The price was a penny shy of the highest-ever settlement price for a front-month contract that was set July 14, 2006. As troubling as the short-term price of oil has become, the long-term price looks far more menacing.

Jeffrey Currie, a London-based commodity analyst, says $95 crude is likely this year unless OPEC unexpectedly increases production, and declining inventories are raising the chances for $100 oil. Jeff Rubin at CIBC World Markets predicts $100 a barrel as soon as next year.

“We’re only a headline of significance away from $100 oil,” said John Kilduff, an analyst in the New York office of futures broker Man Financial Inc. “The unrelenting pressure of increased demand has left the market a coiled spring.” “New disruptions of Nigerian or Iraqi supplies, or any military strike against Iran , might trigger the rise,” said Kilduff.

Oil prices could triple in three months to more than $200 a barrel, given the right circumstances, according to Matthew Simmons, chairman of Simmons & Co., a Houston investment bank.

We are a long way from 1998-1999 price crash when oil briefly fell below $10 a barrel. It seems hard to imagine that crude is now up 8 fold. In just the past 6 months, this precious commodity has risen 51 percent.

The key reason for the dire predictions is the simple fact that demand is up a million barrels a day. The demand increase is being led by the booming economies of India and China , which means more cars and trucks and more factories that burn oil and gas.

Another area that is putting upward pressure on oil prices is the decline in production on the part of major oil companies. The supply of oil is down by a million barrels a day. Most of the major oil firms reported their earnings last week, and every one of them reported a decline in their ability to bring oil to market:

British Petroleum said oil and gas output fell 5.3 percent to 3.804 million barrels per day in the second quarter of 2007 compared with a year earlier.

Exxon Mobil said the company’s production dipped 1 percent on an oil equivalent basis. It saw the most weakness in fields that produce natural gas.

ConocoPhillips’ daily production for the quarter averaged 1.9 million barrels of oil equivalent per day, down from 2.1 million barrels a day in the year-ago period. The company attributed the decrease to normal field declines, planned maintenance in the North Sea and its exit from Dubai , among other factors.

Occidental Petroleum Corp. said in its latest report the daily oil and natural gas production averaged the equivalent of 583,000 barrels of crude a day during the quarter, down from 609,000 a year ago.

Royal Dutch Shell – Production slipped 2% to 3.18 million barrels of oil equivalent, hurt as violence in Nigeria has halted onshore production, and the country has moved to restrict offshore output to meet OPEC targets. Due to what Shell calls the “security situation,” 195,000 barrels of oil a day were shut in.

Venezuela’s national oil company — a major supplier of fuel to the United States — has seen oil production fall to 2.37 million barrels a day, down from 2.6 million barrels a day a year ago.

Bible prophecy makes no direct mention of oil, but I strongly believe it will be a major catalyst for several key end-time events. Any type of oil shock will draw the world’s focus towards the Middle East.

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Iran Says US Too Involved in Iraq to Attack It

Monday, July 30th, 2007

Iranian Foreign Minister Manouchehr Mottaki has told a German magazine that the United States has too many problems in Iraq to become involved in armed conflict with Iran.

Military action is sometimes discussed in Washington as an option in trying to derail what it sees as Iran’s drive to develop nuclear weapons.

The United States “is not in a position to get into a new military conflict”, Mottaki was quoted as saying in an excerpt of an interview to be published in Focus magazine.

“170,000 American soldiers can guarantee neither their own safety nor the security of Iraq,” he said.

The United States and its allies say Iran’s nuclear fuel enrichment programme is aimed at developing nuclear weapons. Iran insists it is purely for peaceful power generation.

The United Nations has imposed sanctions on Iran for failing to stop enrichment, but Mottaki reiterated that Iran had no intention of curtailing the programme.

Mottaki has dismissed the U.N. sanctions already imposed and said that tougher penalties would not change Iran’s mind.

There was no mention of plans for further talks between Iran and the United States on Iraq.

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