Middle East Turmoil Big Part of New Record Oil Prices - and Profits

Israel's attack on first Gaza and then Lebanon is being blamed, at least in part, for the big rise in crude oil prices this week, taking them within a hair of $80/barrel.

"I don't think we're done on the upside," said BNP Paribas Commodity Futures broker Tom Bentz, referring to the rise in oil prices.
The Organization of Petroleum Exporting Countries issued a statement in which it blamed geopolitical factors beyond its control for the recent price volatility. The groups emphasized that the market is "well-supplied with crude."

Indeed, oil prices did not arrive at the doorstep of $80 a barrel overnight. The combination of rising global demand, limited excess production capacity and concerns about supply interruptions from Nigeria to the Gulf of Mexico have all played a part, analysts said. So, too, has the influx of billions of dollars into oil markets in recent years by hedge funds and other financial institutions angling for profits amid global instability.

Let us not forget, however, that despite how bad things get, the one thing that NEVER falls is oil profits. In the last year, major oil companies have profited as no one conceived possible. These profits never seem to fall victim to anything.