Someone at work here, trying to push Oil prices down with rumors of Arafat dying. Another US market ploy to boost their economy and US dollar on the back bullsheet rumors. What makes anyone think if Arafat dies would change anything including sentiment towards Israel..
Renewed concerns about instability in the Middle East failed to provide any support for oil Thursday.
A Palestinian spokesman and a French military spokesman have denied that Yasser Arafat has died, according to Agence France-Presse reports. Earlier, Israeli media reported that he had died. Arafat had been in intensive care at a French military hospital in the Paris area.
If Arafat were to pass away, "it would allow some stability and open the door for a new leadership in Palestine," said National Futures' Person.
But "that country has not been an issue regarding oil production in the Middle East, especially since the U.S. invasion in Iraq," he said.
"The market right now is centered on overall Middle East policy with the re-election of President Bush and further avenues of supplies for global consumers," he said.
The negatives..... On the other hand, now that Bush has gotten voters' approval for a second term, "he will likely continue filling U.S. emergency oil stockpiles despite high prices," said John Person, president of National Futures Advisory Service.
"His re-election will stoke nerves about U.S. policy in the Middle East, particularly OPEC's second-biggest producer, Iran," he said.
Added to that, Kuwait has delayed a planned increase of 200,000 barrels per day in its output capacity. "Obviously this move will potentially prolong the fear of global shortage supply capacity, which has already sent prices to record highs," said Person.
And fresh worries over production from Russian oil giant Yukos (YUKOF: news, chart, profile) surfaced Wednesday, following news that it will hold a special shareholders meeting Dec. 20 to discuss the possible liquidation and bankruptcy of the company.
The company, which produces more than 1.6 million barrels of oil per day and accounts for about 19 percent of Russia's total output, suffers from a total tax debt of around $17.6 billion, according to the Associated Press.
