The Energy Report: Trying to find the light

By: Phil Flynn

Published: Jan 30, 2012

Is there any light at the end of this tunnel? Instead of a decisive plan to bailout Greece, questions still linger while we try to decide whether this European crisis will end nicely. It just goes on and on.

Iran also does not seen to be as scary on Monday. Weapon inspections are raising hopes that there may be a resolution to this crisis. It seems that according to the AP, "Iran's official news agency reports that the country's foreign minister has said that inspectors from the U.N.'s nuclear watchdog can extend an ongoing visit to the Islamic Republic." The Monday report by IRNA says Ali Akbar Salehi told Turkish TRT TV in Addis Ababa, Ethiopia, that the three-day visit by International Atomic Energy Agency inspectors that started Sunday can be extended "if they desire." The remarks appear to be part of a show of flexibility and transparency by Tehran during the IAEA inspection tour, which could greatly influence the direction and urgency of U.S.-led efforts to rein in Iran's ability to enrich uranium. The West suspects Iran is pursuing weapons technology. Iran says its program is for peaceful purposes.

Gas prices soared as Bloomberg News reported that, "Hedge funds boosted bullish gasoline bets to a record as the shutdown of refineries accounting for 24 percent of U.S. East Coast capacity spurred concern that fuel supplies in the region will be insufficient to meet demand. Gasoline rose to a five-month high last week as the funds and other large speculators increased wagers on rising prices to the highest level in data going back to June 2006, the Commodity Futures Trading commission’s commitment of Traders report on Jan. 27 showed. Futures have climbed 9 percent this year on the New York Mercantile Exchange as Sunoco Inc. and ConocoPhillips shut unprofitable refineries in Pennsylvania with a combined capacity of 384,000 barrels a day. Hovensa LLC, a partnership of Hess Corp. and Petroleos de Venezuela SA, said Jan. 18 that it will close its U.S. Virgin Island plant next month, idling 350,000 barrels of daily capacity supplying the East Coast."

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