Oil Soars to New Highs on YUKOS

[hang a left]

Oil Soars to New Highs on YUKOS




LONDON (Reuters) - World oil prices soared to new record highs on Thursday after the Russian government barred oil major YUKOS from accessing its bank accounts, threatening its ability to continue exports.

U.S. crude (CLc1: Quote, Profile, Research) jumped to an all-time high of $44.40 a barrel, standing $1.52 higher by 1715 GMT at $44.35. London Brent futures rose to $41.30 -- another record high -- before easing back slightly to $41.19.

Markets have now shrugged off bearish news that pushed prices about a dollar lower in the previous session as news about YUKOS underscored the precariousness of global energy supplies. The company pumps 1.7 million barrels per day or a fifth of Russian production and 2 percent of world supplies.

Russia's Justice Ministry said on Thursday that permission granted by one bailiff, sent to YUKOS (YUKO.RTS: Quote, Profile, Research) only on Wednesday and made public by the oil firm, was illegal and therefore withdrawn.

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http://reuters.com/newsArticle.jhtml?type=businessNews&storyID=5887292

[Mad As Hell]

1. Ruh roh.

Bad for *. Bad for the U.S.

[BlueEyedSon]

2. Russian president Putin finally figured out how to conquer the US.

Heh. Who would have thought they would win?

[Neshanic]

3. But I looked into his eyes! Putie Pie, say it ain't so!

[Junkdrawer]

8. Pooty Poot may not bail Dubya out of this one...

Didn't he up Russian oil production just before the Iraq invasion?

[HuckleB]

4. Who's surprised?

All the biz pubs were just glowing yesterday, after prices rolled back. How will they explain this?

[DoktorGreg]

5. Global depression kicks in at 50

Wow, Bush is about ready to enron the entire world!

[Barrett808]

6. A grim direction this might take: "When Grozny comes to Fallujah"

When Grozny comes to Fallujah
Spengler

Do not be surprised to see three or four divisions of the Russian army in the Sunni triangle before year-end, with an announcement just prior to the US presidential election in November. Long rumored (or under negotiation), a Russian deployment of 40,000 soldiers was predicted on July 16 by the US intelligence site www.stratfor.com, and denied by the Russian Foreign Ministry on July 20. Nonetheless, the logic is compelling. Russian support for US occupation forces would make scorched earth of Senator John Kerry's attack on the Bush administration's foreign policy, namely its failure to form effective alliances. For Russian President Vladimir Putin, the chance to make scorched earth of Fallujah is even more tempting.

In exchange for a troop presence in Iraq, Russia would obtain a free hand in dealings with the countries of the former Soviet Union. It would gain leverage against a weakening Turkey in the Caucasus and Central Asia. And it would vastly enhance its leverage in negotiations over the placement of oil pipelines. Most important, perhaps, it would assert its old status as a global military power against the feckless Europeans. In short, the arrangement would benefit everyone, except of course the population of Fallujah.

America's squeamishness in the face of large-scale civilian casualties mystifies the Russians, who know about such things. The remnants of the Chechen resistance have few friends, even among Arab governments. The General Assembly of the United Nations remained mute over the Chechen dead when Russia razed Grozny in 1999, killing or displacing about half of the population of 1 million. The Council of Europe, responsible for investigating human rights violations, suspended activity in Chechnya last year by agreement with Moscow. In January, the Saudis received the pro-Russian president of Chechnya, Akhmad Kadyrov, who told al-Jazeera, "I think the most important factor is that Prince Abd Allah invited the leaders of the Chechen Republic. This is a definite recognition of the current authorities friendly to Moscow."

(more)

http://www.atimes.com/atimes/Middle_East/FG27Ak01.html

[BlueEyedSon]

7. Whoa, kick that

[ursacorwin]

11. ditto!

damn...russians in iraq. my head is just spinning to contemplate the russians bailing *'s ass out. oh god make this not happen.

[BlueEyedSon]

13. They would be doing it for their own best interests

get it?

[Zynx]

10. Georgia dies first if Putin gets a free hand

They're already posturing to fight a war because Putin hates the US lapdog we put in there.

If the Russians are going to Iraq, they're going to be getting paid a lot. And Bush is stupid for doing it, but that goes without saying.

[reprobate]

12. But maybe not.

With sadr calling for a new uprising, and all of russia remembering what happened to them in afghanistan, it will take some big payments for this to take place.

I wouldnt hold my breath.

[slor]

9. This is gonna be a rough ride...

I wish Carter had won a second term.

[brokensymmetry]

14. Think wicked -

Raygun sent lots of aid into Afghanistan with the specific purpose of bleeding the U.S.S.R.

Would Russia remember that, and Serbia, and send a little help to the Iraqis? All the time promising * that help is coming, so as to keep us in Iraq - and bleed us?

Naw, they wouldn't be that devious. They'd never do that - would they?