Middle East tension boosts gas prices

Jun 14, 2013

Here is this week’s edition of Futures File, our weekly commodities wrap-up:

Corn grinding lower

Despite the poor weather conditions earlier this spring that delayed planting across much of the Midwest, America’s farmers likely planted a record corn crop, according to USDA estimates. A report released Wednesday projected a total corn crop of over 14 billion bushels, a jump from the previous record of 13.1 billion. The prospect such large production pushed prices lower this week, with December corn falling nearly 30 cents per bushel (-5.4%) to $5.30, the lowest price in three weeks.

As of the beginning of the week, over 25 million acres of corn and soybeans were left unplanted, leaving much uncertainty in the current USDA forecasts. Another report detailing planted acreage will be released at the end of June, giving the markets further insight into this year’s crop. Other analysts are still concerned that late-planted crops could have problems as they develop, reducing yields beneath current USDA estimates. For example, some note that the plants’ pollination period will be shifted later into July, when hot and dry conditions can interrupt pollination.

As of midday Friday corn for delivery in December (after this fall’s harvest) was worth $5.32 and November soybeans were worth $12.95 per bushel.

Petroleum jumps on mideast unease

Crude oil, gasoline and diesel fuel prices were all higher this week, rallying on increasing tensions in the Middle East. Protests in Turkey, upcoming elections in Iran, and the announcement that the United States will soon begin arming rebels in Syria all threaten to add to uncertainty to that region. Although the United States is becoming less dependent on foreign oil as domestic production increases, crude oil remains an internationally traded commodity, vulnerable to headlines from across the globe.

Meanwhile, strong economic data from the United States inspired optimism that the US economy would continue to gain strength, keeping demand for liquid fuels high. By midday Friday, crude oil had experienced a weekly rise of $2.23 (+2.3%) to $98.25 per barrel, the highest price in nine months. At the same time, gasoline gained two cents per gallon (+0.7%) and diesel futures spurted 7.1 cents (2.5%) higher.


Darwin's choice

More gouging by the oil companies, but under Obama's lead, everyone seems content.....!

The Big Dog's back

I don't think anyone is content about high gas prices except for those who are major stockholders (pooh) in the oil companies.


^^^ “Another insightful comment by bonehead.” - the Big Dog’s back, 6/5/13 :-7


Obama is in deep with oil stocks.


Wasn't there just a story on how the drastic FALL in price was coming for the Midwest???? http://www.norwalkreflector.com/... nothing is guaranteed .


Remember when Dick Cheney told us the Iraq War would pay for itself and US oil prices would actually come down because of it?


Bucknut if you can remember what Cheney told us then surely you must also remember what Obama PROMISED us if not I have included what he said below.

In his April 25, 2008 speech in front of a gas station in Indianapolis, Obama PROMISED he would lower gas prices, if elected, and blamed Bush and Cheney for the high gas prices.

Wow he has really lowered the gas prices!!!!!!!!!!!!!!!


yea just like when they pushed for the Alaskan pipe line years ago so "we will nver be dependant on foreign oil again"


Bucknut don't bring facts here. Many capitalists hate it.


There is ALWAYS an "excuse" to keep gasoline and oil prices high.


What Blues said....


Call it what you want, but our governments getting richer off this


"Brent crude rose and U.S. oil struck a nine-month high on Friday after news that the United States had authorized sending U.S. weapons to Syrian rebels sparked concerns about Middle East supplies."


Ya might wanna share some of the blame with the Nobel Peace prize winner in the WH that's gonna get the U.S. involved in another (bleeping) war.


Couldn't agree more, and they'll continue to say that terrorists hate us because of our freedom. No, they hate us because we put our nose into everyone's business. They hate us because we have 900 military bases in 130 counties around the world. 1.6T dollars spent annually on military, 45 bases surrounding Iran and last I heard we aren't at war with them (yet). How are prices of oil gonna come down when we are the ones creating tensions in the Middle East. Oops, I better tone down my rhetoric or the NSA might read my post and declare me an enemy of the State.

The Big Dog's back

419, In order to agree with contwango you would have to change your stance every time the wind blows, or in this case because a Black man in the Blackhouse.


^^^ “Another insightful comment by bonehead.” - the Big Dog’s back, 6/5/13 :-7




Re: "NSA..."

Happened to catch a bit of RT last night. Did you know that there was a protest in DC over the govt. intrusion?


NONE of the U.S. media I was aware of covered it.

If Mr. Snowden is such a HUGE security threat after just 'mentioning' the existence of these surveillance programs; what's gonna happen if there's a real serious breach?

And Mr. Obama whined to Xi about Chinese computer hacking? Yeah right, like the U.S. doesn't do it too?

I love the NSA and govt. argument that the snooping is "lawful." Yeah, it was "lawful" to put Japanese-American citizens in concentration camps too.

"Lawful" is a bureaucratic weasel-word which means: We believe in and trust our own crap.

The Big Dog's back

Still backing that traitor Snowden ehhh winnie.


^^^ “Another insightful comment by bonehead.” - the Big Dog’s back, 6/5/13 :-7


Contango- Snowden IS a traitor.


Move to another country .


Re: "Snowden IS a traitor."

Your pal, VP Cheney agrees with you. :)

Really are you ...

There is always going to be unease in the middle east. There is always going to be unease in congress. Big oil lobbyists in DC, the stock market, and unease anywhere will continually keep prices at the pump burning a hole in our hard earned money.


Whatever! That's the excuse THIS TIME!!!!!!!!


"Is Obama Starting A War With Syria Just A Distraction From All The Scandals?":


Must be taking lessons from Pres. Clinton who lobbed a few cruise missles in order to distract from gettin' "Lewinskied."


Clinton went after Bin Laden. The republicans accused him of "Wag the Dog"--drawing attention away from the Ken Star investigations, and the leaks that went with it. During the Gore/Bush election Bush made statements about the Clinton/Gore Whitehouse "pounding sand with bombs."

I'm sure that this dismissal was the reason that, even when warned about the danger growing in Afghanistan, the Bush/Chaney administration chose to ignore. The "pounding sand" statement is why we attacked Iraq, IMO. Had to show "shock and awe" while blowing up something other than sand.


Re: "Clinton went after Bin Laden."

Referring to the aspirin factory he 'cruised' in Sudan.

So you're OK with Pres. Obama headin' for war in Syria?

Darwin's choice

Where's Coasterfan today telling us about how terrible gas prices were under Pres. Bush??? Gas/fuel prices under Obama = highest 5 year average in history!! Bend over and take it!!!


IMO, if Pres. Obama "green lighted" the Keystone Pipeline, it would have a positive though temporary effect on oil prices.

Increased production and too few pipelines is increasing the cost of transportation and causing bottlenecks in distribution.

A lot of the production from the Bakken oil sands is being shipped by rail.

Pres. Obama's buddy Warren Buffett likes that - he owns the RR.

Also, there's a need for more pipelines on the East Coast. A lot of their oil is being imported by ship from overseas.

The Big Dog's back

The oil from the keystone Pipeline would be going overseas.