coming to a theatre near you., page-8

re: coming iran war/oil Oil reaches
record high
Market rattled by Fahd's death
refinery outages, Iran's nukes

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Posted: August 1, 2005
3:00 p.m. Eastern




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Following the death of Saudi Arabia's King Fahd today, oil prices approached all-time highs, passing $62 a barrel.

The U.S. benchmark – September-dated contracts – was up $1.73 to $62.30.


Along with uncertainty about political stability in Saudi Arabia, the market has been rattled by U.S. refinery outages and tensions over Iran's resumption of uranium processing today – a process the U.S. suspects will help Tehran produce a nuclear bomb.

The price of oil has skyrocketed 40 percent this year.

King Fahd will be succeeded by his half-brother Crown Prince Abdullah, who has served as the de-facto ruler since Fahd became incapacitated in 1995 with a stroke.

Saudi Arabia's new U.S. ambassador, Prince Turki al-Faisal, said Abdullah will maintain the long-standing policy of keeping global markets well supplied, but analysts say investors are reacting to uncertainty about succession after Abdullah, who is in his 80s.

Meanwhile, over the weekend, Exxon Mobil shut down its 235,000-barrel-per-day refinery in Joliet, Ill., and British Petroleum closed a gasoline-producing unit at its Texas City refinery.

Iran, OPEC's No. 2 oil producer, defied European Union warnings today, saying it would break U.N. seals on a nuclear plant and resume processing uranium.

The EU 3 of Britain, France and Germany had been mediating between the U.S. and Tehran over Iran's nuclear program.

Washington believes Iran is trying to develop atomic weapons, while Tehran insists the program is for energy and other peaceful purposes