If a falsified report that a Saudi pipeline can drive oil over $110 a barrel, just imagine the repercussions of a full Iran-Israel conflict. According to the report that was later confirmed “completely false” after US markets had just closed, a natural gas pipeline in the city of Awamiyah exploded resulting in numerous injuries and deaths. Thats right, natural gas drove up the price of crude simply on rumor. That should give you an idea of how volatile the Iran situation is on the markets, despite stepping out of the headlines momentarily. Considering we have close to two years supply of the commodity sitting in strategic reserves, it seems high oil prices are here to stay in the immediate term.. Or at least until election time.
US Stocks: Stocks End Off Highs on Saudi Pipeline Reports – US Business News – CNBC.
Update: According to Ayman Khlifat, a commodities trader and interpreter in Jordan, the explosion did happen and the coverup was due to political reasons.. Go figure.