How An Embargo Of Iranian Oil Could Affect Markets

[Purveyor]

(01-24) 15:22 PST NEW YORK, (AP) --

The U.S. and Europe are trying to stop Iran, the world's third-biggest oil exporter, from selling crude. Iran's response is to threaten to disrupt shipments from the entire Middle East.

Yet oil prices have hardly budged. They're at $98.95, up just 12 cent since the start of year.

Just a year ago, uprisings in far less important oil-producing countries such as Egypt and Libya sent oil and gasoline prices to their highest levels in three years and prompted Western nations to release millions of barrels of oil from emergency supplies.

The reason for such calm this year: No oil has been blocked, and there's a good chance none will be.

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http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2012/01/24/national/a152215S78.DTL

[DJ13]

1. "Yet oil prices have hardly budged."

If I remeber correctly, last year when the price jumped from the $60 range to above $80 the excuse given was it was due to "a possible disruption in oil from Iran".

I know the oil traders would like people to forget the past excuses for price increases, but they've already used this one too many times, so if its not working now they only have themselves to blame.