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U.S. defense contractors don’t make a habit of sending “thank you” letters to America’s enemies.

But if they did, the corporate leaders at The Boeing Co. (NYSE: BA) might want to look up Vladimir Putin‘s address – before running to the Hallmark store.

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Oil- Money Morning - Only the News You Can Profit From.

  • $130 Oil Could Be Just the Beginning as Libya Crisis Intensifies

    With rising violence in Libya looking increasingly like a war, the head of Libya's national oil company said yesterday (Wednesday) that crude prices could reach $130 a barrel within a month.

    But that may be just the beginning, as other analysts have raised fears of oil prices topping $200 and even $300 a barrel.

    "The oil market is very sensitive," Shokri Ghanem, chairman of Libya's National Oil Corporation, told Reuters. "Speculation is very important for the market. When you see that production in an important country went down you are afraid it will go down even more."

  • Mideast Crisis Update: Don't Count on the Saudi Oil Supply

    As the autocratic rule that has dominated the Middle East for decades continues to unravel, volatility in the global oil markets continues to point toward one overriding concern: How can we maintain an oil-flow balance in the face of this escalating uncertainty?
    Global oil prices spiked to their highest levels in more than two years on Friday because of worries that the unrest and resulting production curbs in Libya would spread to other oil-exporting countries.
    Oil prices retreated a bit yesterday (Monday) in the aftermath of several developments that investors perceived as positive. In the first, reports said that Libyan protesters were allowing oil shipments to resume from certain parts of the country. And in the second, Khalid Al-Falih, the head of state-owned Saudi Aramco, said that that "all incremental needs" for extra oil have been met.
    Of course, even with the Saudi oil supply pledge, these developments offer only a momentary respite in the Mideast crisis. Almost two-thirds of the world's known conventional oil supplies are located in the Middle East region. And the question that isn't being answered – or even asked – right now is this: Are oil supplies sustainable in the face of a longer-term crisis?
    The answer to that question will leave you feeling less than sanguine.
    <<BREAK HERE>>To understand why this crisis is worse than most believe, please read on…

  • This Middle East Meltdown Will Send Oil to $300 a Barrel – and Pump Prices to $9.57 a Gallon

    The unrest in the Middle East oil patch is roiling the global oil markets on an almost daily basis.

    The events in Egypt, Libya, Saudi Arabia, Oman and other countries are also forcing us to ask that long-dreaded question: What happens if the countries throughout the Middle East region fall to radical governments?

    The answer is both stunning and surprising.

    In an absolute worst-case scenario – if the entire Middle East falls under radical control – we could be looking at $300-a-barrel oil and pump prices of $9.57 a gallon. Definitely a stunner.

    Here's the surprise: Even such a worst-case outcome would not result in the end of Western civilization as we know it. In fact, you can hedge against such a meltdown – just follow the recommendations that we detail below.

    For two moves to make now, please read on…

  • Mideast Crisis Update: Don't Count on the Saudi Oil Supply

    As the autocratic rule that has dominated the Middle East for decades continues to unravel, volatility in the global oil markets continues to point toward one overriding concern: How can we maintain an oil-flow balance in the face of this escalating uncertainty?

    Global oil prices spiked to their highest levels in more than two years on Friday because of worries that the unrest and resulting production curbs in Libya would spread to other oil-exporting countries.

    Oil prices retreated a bit yesterday (Monday) in the aftermath of several developments that investors perceived as positive. In the first, reports said that Libyan protesters were allowing oil shipments to resume from certain parts of the country. And in the second, Khalid Al-Falih, the head of state-owned Saudi Aramco, said that that "all incremental needs" for extra oil have been met.

    Of course, even with the Saudi oil supply pledge, these developments offer only a momentary respite in the Mideast crisis. Almost two-thirds of the world's known conventional oil supplies are located in the Middle East region. And the question that isn't being answered – or even asked – right now is this: Are oil supplies sustainable in the face of a longer-term crisis?

    The answer to that question will leave you feeling less than sanguine.

    To understand why this crisis is worse than most believe, please read on…

  • $100 Oil Sparks Energy Investment Interest

    Civil unrest in the Middle East continues to push oil prices higher as companies with Libyan operations shut down production, threatening oil exports to Europe.

    Crude oil futures on Wednesday hit the $100 a barrel level on the New York Mercantile Exchange (NYMEX) for the first time since September 2008. The April contract was as high as $100.91 in pre-market trading yesterday (Thursday).

    Prices are even higher in Europe as its market is much more sensitive to Libyan oil export disruption. April Brent crude futures contract rose $2.45, or 2.2%, to $113.75 a barrel yesterday and hit an intraday high of $119.79, the highest level since mid-2008.

    Volatility and uncertainty are driving both prices up, according to Money Morning Contributing Editor Dr. Kent Moors, a noted energy expert and editor of the Oil and Energy Investor.

    "The Brent is far more sensitive to what's occurring in the Middle East than the [West Texas Intermediate] WTI in New York," Moors said in a FoxBusiness interview Wednesday. "The Brent also is more widely traded internationally than WTI is. So the end result is whenever you get an uncertainty situation like the one we currently have, Brent is going to be spiking further."

  • The Middle East Crisis: Egypt, Libya and Triple-Digit Oil Prices

    Given the events that we've seen in Egypt and elsewhere in recent weeks – as well as the developments we've seen in Libya in recent days – there's only one conclusion to reach.

    We are right now looking at the prospect of significant and sustained instability in a region that's home to two-thirds of the world's known crude oil reserves.

    The Middle East crisis – and the unsettling reality it represents – has already sent tremors through the international energy sector. Oil prices are on the march. And this is merely the beginning.

    The problems will likely get much worse.

    But forewarned is forearmed: Even if the Middle East crisis continues to escalate, we can predict how the global energy sector will be affected. In fact, if the crisis reaches the severity that I'm expecting, it will send the world's energy sector through three very predictable phases.

    And each of those phases affords investors with very specific profit opportunities – if they know what to expect.

    For the three phases to watch for, please read on…

  • Oil Prices Surge to Two-Year High on Middle East Turmoil

    Protests in the Middle East drove oil prices to a two-year high yesterday (Tuesday) as anti-government violence spread in Libya, threatening the nation's oil industry and raising the possibility the contagion could soon affect larger producers in the region.

    Oil jumped more than $7 a barrel, breaching $98 for the April contract of West Texas Intermediate (WTI) crude on the New York Mercantile Exchange. Meanwhile, Brent crude climbed as much as 2.7% to $108.57 on the ICE Futures Europe Exchange.

    "Oil is being bought on the risk that this contagion will spread through the Middle East," Jonathan Barratt, managing director of Commodity Broking Services in Sydney, told Bloomberg News by telephone. "This effect is a knee-jerk reaction to the fact that this could spread."

    Libya is the latest chapter in a saga of unrest that began in Tunisia in January and has raced through North Africa and the Middle East in recent weeks.

    Iran added to the tension in the region yesterday by entering two of its naval ships into Egypt's Suez Canal headed toward the Mediterranean. Israel considers the presence of Iranian warships sailing through the canal "a provocation," Foreign Ministry spokesman Yigal Palmor told Bloomberg.

    Fears of massive disruptions in the market have oil traders on edge and the energy markets are now braced for an even sharper run-up, according to Dr. Kent Moors, a noted energy expert and editor of the Oil and Energy Investor.

    "That traders do not regard this as a short-term problem is seen in the futures contract curve. We have an escalating and contango market, one in which each month further out has a higher price than earlier months," said Moors. "The volatility will now kick in big time, and that will further unnerve the trading environment."

    Libya's importance as an oil producer is more symbolic than anything else.

  • 2011 Oil Prices Prompting Energy Consumption Concerns Among Readers

    With oil prices moving higher, consumers are already fretting about how much it's going to cost them to fill their tanks. And given the current outlook, that cost is going to head even higher – meaning there's no relief in sight.

    The political mayhem in Egypt is the latest oil-price catalyst to appear, and is yet another candidate to help push 2011 oil prices closer to the predicted $150-a-barrel level. Analysts worry that Egypt's chaos could disrupt the millions of barrels of oil that pass through the Suez Canal.

    Traders' main unease is that the political unrest in Egypt is something that could occur in neighboring countries – especially those with a much bigger influence on the global oil exporting market.

  • Ensco, Pride Combine to Create the World's Second Largest Offshore Driller

    Ensco PLC (NYSE: ESV), a U.K.-based energy company, announced yesterday (Monday) that it agreed to buy Pride International Inc. (NYSE: PDE), for $7.3 billion in cash and stock in a deal that will create the world's second-largest offshore driller.

    The transaction represents a further transformation of the U.S. offshore drilling industry, which is still struggling to recover from last year's explosion of Transocean Ltd.'s (NYSE: RIG) Deepwater Horizon drilling rig, which killed 11 workers and spewed roughly 4.8 million gallons of crude into the Gulf of Mexico. Transocean, based in Vernier, Switzerland, is the world's largest offshore driller.

    Ensco will pay $41.60 a share for Texas-based Pride, a 21% premium to its closing price on Friday. The purchase would be the largest for Ensco, and is the second-largest acquisition of a U.S. oil services company in the last year.

  • Are You Concerned About 2011 Oil Prices? 

    With crude oil prices moving higher, consumers are already fretting about how much it's going to cost them to fill their tanks. And given the current outlook, that cost is going to head even higher – meaning there's no relief in sight.

    The political mayhem in Egypt is the latest oil price catalyst to appear, and is yet another candidate to help push 2011 oil prices closer to the predicted $150-a-barrel level. Analysts worry that Egypt's chaos could disrupt the millions of barrels of oil that pass through the Suez Canal.

    Oil prices on the New York Mercantile Exchange (NYMEX) were steady yesterday (Tuesday), after jumping 8% in the previous two trading sessions to land just below $92 a barrel. Meanwhile, Brent crude oil futures in London hit a two-year high of $102.08 a barrel in intraday trading.