It May Be Time to Invest in Oil Bonds
Yesterday, stocks fell 38.54 points (.3%) to 12,647.48 while oil prices continued on their upwards swing., climbing to their highest level yet this year. This is a new high (ranging in price from $60.50 to $61.80), which was driven by tensions with Iran and continued pressure upon U.S. petroleum product suppliers. The tension exists because of Iran’s continued desire to create nuclear weapons. Plus, it is believed that there will be further declines in the U.S.’s product inventories next week as the refineries will need to close for maintenance and other work.
On Monday the senior diplomats from the U.N. Security Council plan to meet together in London. They will begin working on a new resolution that is aimed at pressuring Iran to stop its development of nuclear weapons. However, it is believed that there will be a confrontation over this in the near future. This is especially true after Iran’s President Mahmoud Ahmadinejad and former President Akbar Hashemi Rafsanjani both held speeches on Friday wherein they said that they are being bullied by that critics of Iran’s nuclear program.