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Oil drops sharply as supply worries subside
That's after a the mixed signals from Iran about the continued negotiations underway and the possible climb down to some previous comments about *gasp* Iran blocking the Hormuz Straits if attacked. Iran is considering negotiating, but saying they are not going to negotiate. Hey! Is Obama running Iran?U.S. holds navy exercise after Iran comments on Gulf
The Navy (with a capital "N") said Iran will not be allowed to block the Hormuz Straits.Iran stages war games, rejects nuclear demand
Of course, that last announcement happened late in the day when trading was closing in the US, so I imagine that tomorrow will see oil prices back on the rise. What I find interesting is all the that military parading around that they call "war games". These are really quite small affairs and rarely includes large scale mobilization. At least compared to the US version of "war games". Further, most of the equipment they show is old, though they splash some new paint, add a component and call it new. Further, Iran has limited gas refinement capabilities, depending largely on re-importing the gasoline product after exporting the oil. They have limited, if any, "reserves" already pumped.The most dangerous weapon that Iran has is not its technology, but the number of men in its forces. Then that comes down to, who is loyal and who is not.
Just in the nick of time, the US Department of Interior jumps in to support the "drill here, drill now" call by stating, yes, indeed, the US could be producing much oil within the continental US and its surrounding waters. The department calls on Congress to lift the ban. -Kat
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A must-read: "The Ultimate War Simulation Game" (h/t Jimbo) - FbL
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