Danny Esposito, co-editor for Penny Stock Detectives, believes that oil prices remain at high levels because, when the Prime Minister of Israel visited the White House recently, he stated that new sanctions against Iran won’t work. March 19, 2012
Danny Esposito, co-editor for Penny Stock Detectives, believes that oil prices remain at high levels because, when the Prime Minister of Israel visited the White House recently, he stated that new sanctions against Iran won’t work. Esposito points out that the Prime Minister of Israel’s comments were in direct contrast to President Obama’s statements.
“The prime minister went on to say that Israel will decide, independently, if a strike against Iran would be necessary to protect itself against Iran’s nuclear weapons capability,” said Esposito.
According to Esposito’s recent Penny Stock Detectives article, the UN nuclear energy agency has stated over the last few months that the real sticking point with Iran is the fact that the country continues to deny the nuclear energy agency access to a key military facility. The UN nuclear energy agency believes that this particular facility has been advancing a nuclear energy weapons program. Iran disagrees.
Esposito believes that Iran is taking Israel’s threat very seriously, because, in a complete 180-degree turn, Iran is now saying that the UN nuclear energy agency can have access to the facility in question.
This sent oil prices lower, at least for the time being. The details of this potential visit to this key facility and what areas of the facility can be visited still need to be worked out. Israel must be incredibly frustrated, because this stall tactic is working politically.
“Iran is now conceding to the UN nuclear energy agency’s biggest concern. The devil is in the details and I suspect if one area of that facility truly has nuclear energy weapons capability, the nuclear energy agency will not be given access to it,” Esposito notes.
Despite this, Iran has made it clear that any action against it will result in the closing of the Strait of Hormuz. Almost 20% of all of the world’s oil supply is shipped through the Strait of Hormuz. Add to this the fact that Iran pumps roughly 3.55 million barrels of oil a day into the world markets.
Esposito concludes that, if war with Iran breaks out in the near future, this type of disruption in oil supplies will cause oil prices to rise dramatically from current levels.
“There will be a resolution one way or another sometime in 2012,” Esposito believes. “In the meantime, any oil price weakness could be a great buying opportunity. If war breaks out, I believe that oil prices will spike significantly higher.”
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