Wednesday, July 4, 2012

Oil prices surge on Iran tensions, Norway strike



By AFP

Oil prices shot up Tuesday on fresh tensions over Iran, where lawmakers threatened to shut the Strait of Hormuz in retaliation for oil sanctions, and after a strike shuttered production in Norway.

New York's main contract, light sweet crude for August, soared $3.91 to close at $87.66 a barrel.

In London trade, Brent North Sea crude for delivery in August settled at $100.68 a barrel, jumping $3.34 from Monday's closing level.

"With Iran oil out and Norway on strike it is giving the oil market reason to bounce!" said Phil Flynn at Price Futures Group.

Crude prices had fallen Monday in the wake of weak economic data in China, the world's biggest energy consumer; the first fall in US manufacturing in three years; and as markets assessed the impact of a European Union embargo on Iranian oil.

Full implementation of an EU embargo on Iranian oil took effect on Sunday, provoking anger in Tehran, which says the measures will hurt talks with world powers over its contested nuclear activities.

On Tuesday, oil prices surged higher after Iran test-fired missiles into its central desert region, drawing a US warning that the tests were in violation of UN resolutions that ban Iran from any ballistic weapons activity.

Meanwhile, some 120 lawmakers in Iran's 290-seat parliament backed a draft bill calling for the strategic Strait of Hormuz to be closed to oil tankers headed to Europe in retaliation for an EU embargo on Iranian crude.

Oil market observer bodies and analysts say the EU embargo, coupled with US financial sanctions ramped up on Thursday, are gutting Iran's vital oil exports, which account for half of government revenues.

The International Energy Agency says Iranian crude exports in May appear to have slipped to 1.5 million barrels per day (mbpd) as the market braced for the embargo, which has been phased in since being announced January 23.

Oil prices also gained support from a 10-day-old strike by more than 700 North Sea oil workers in Norway. The union action over pensions has cut about 10 percent of the total production of the world's eighth-largest oil exporter, according to the Norwegian Oil Industry Association.

Andy Griffith Dead at 86



Andy Griffith, an icon of TV, has died ... this according to Andy's close friend, former UNC President Bill Friday.

Griffith, who became famous for "The Andy Griffith Show," passed away at his home in Manteo, North Carolina this morning.

Friday broke the news to WITN News in North Carolina.

In addition to starring in his show and producing the subsequent "Mayberry R.F.D.," Griffith was a Grammy award-winning southern gospel singer.  Of course, Griffith also starred in the long-running series, "Matlock" and often made guest appearances in other shows, including "Dawson's Creek."

There's a famous statue of Andy and Opie -- played by Ron Howard -- in Raleigh, North Carolina.
Griffith was awarded the Presidential Medal of Freedom by George W. Bush in 2005.

U.S. Adds Forces in Persian Gulf, a Signal to Iran



By THOM SHANKER, ERIC SCHMITT and DAVID E. SANGER

WASHINGTON — The United States has quietly moved significant military reinforcements into the Persian Gulf to deter the Iranian military from any possible attempt to shut the Strait of Hormuz and to increase the number of fighter jets capable of striking deep into Iran if the standoff over its nuclear program escalates.

The deployments are part of a long-planned effort to bolster the American military presence in the gulf region, in part to reassure Israel that in dealing with Iran, as one senior administration official put it last week, “When the president says there are other options on the table beyond negotiations, he means it.”

But at a moment that the United States and its allies are beginning to enforce a much broader embargo on Iran’s oil exports, meant to force the country to take seriously the negotiations over sharply limiting its nuclear program, the buildup carries significant risks, including that Iran’s powerful Islamic Revolutionary Guards Corps could decide to lash out against the increased presence.

The most visible elements of this buildup are Navy ships designed to vastly enhance the ability to patrol the Strait of Hormuz — and to reopen the narrow waterway should Iran attempt to mine it to prevent Saudi Arabia and other oil exporters from sending their tankers through the vital passage.
The Navy has doubled the number of minesweepers assigned to the region, to eight vessels, in what military officers describe as a purely defensive move.

“The message to Iran is, ‘Don’t even think about it,’ ” one senior Defense Department official said. “Don’t even think about closing the strait. We’ll clear the mines. Don’t even think about sending your fast boats out to harass our vessels or commercial shipping. We’ll put them on the bottom of the gulf.” Like others interviewed, the official spoke on the condition of anonymity because of the delicacy of the diplomatic and military situation.

Since late spring, stealthy F-22 and older F-15C warplanes have moved into two separate bases in the Persian Gulf to bolster the combat jets already in the region and the carrier strike groups that are on constant tours of the area. Those additional attack aircraft give the United States military greater capability against coastal missile batteries that could threaten shipping, as well as the reach to strike other targets deeper inside Iran.

And the Navy, after a crash development program, has moved a converted amphibious transport and docking ship, the Ponce, into the Persian Gulf to serve as the Pentagon’s first floating staging base for military operations or humanitarian assistance.

The initial assignment for the Ponce, Pentagon officials say, is to serve as a logistics and operations hub for mine-clearing. But with a medical suite and helicopter deck, and bunks for combat troops, the Ponce eventually could be used as a base for Special Operations forces to conduct a range of missions, including reconnaissance and counterterrorism, all from international waters.

For President Obama, the combination of negotiations, new sanctions aimed at Iran’s oil revenues and increased military pressure is the latest — and perhaps the most vital — test of what the White House calls a “two track” policy against Iran. In the midst of a presidential election campaign in which his opponent, Mitt Romney, has accused him of being “weak” in dealing with the Iranian nuclear issue, Mr. Obama seeks to project toughness without tipping into a crisis in the region.

At the same time he must signal support for Israel, but not so much support that the Israelis see the buildup as an opportunity to strike the Iranian nuclear facilities, which Mr. Obama’s team believes could set off a war without significantly setting back the Iranian program.

A key motivation for “Olympic Games,” the covert effort to undermine Iran’s enrichment capability with cyberattacks, has been to demonstrate to the Israelis that there are more effective ways to slow the program than to strike from the air.

But this delicate signaling to both Iran and Israel is a complex dance. Senator John Kerry, the Massachusetts Democrat who is chairman of the Foreign Relations Committee, said that the administration must strike a fine balance between positioning enough forces to deter Iran, but not inadvertently indicate to Iran or Israel that an attack on Iran’s nuclear sites is imminent or inevitable.

High cesium levels in Fukushima freshwater fish



Japan's Environment Ministry says it detected higher levels of radioactive cesium in freshwater fish than marine fish in disaster-hit Fukushima Prefecture.

The ministry on Monday released the results of its study conducted from December last year to February this year. It took freshwater samples in rivers and lakes, as well as at 8 locations in the open sea.
The highest amount of cesium, 2,600 Becquerels per kilogram, was found in a goby freshwater fish taken from a river that flows from Iitate Village to Minamisoma City, north of the crippled plant.

Some water bugs, which freshwater fish eat, also showed high levels of 330 to 670 Becquerels per kilogram.

A type of flounder and bass caught off Iwaki City, south of the plant, registered 260 Becquerels per kilogram-- the highest level for marine fish.

A ministry official spoke about the differences in cesium levels in freshwater and marine fish. The official said marine fish are likely to get rid of cesium from their bodies more quickly as they have the ability to excrete salt.

The ministry will closely monitor freshwater fish as radioactive cesium may remain in their bodies for a longer period.

Washington building ‘Pentagon’ in Kabul



The United States is spending $92 million to build Afghanistan a new “Pentagon,” a massive five-story military headquarters with domed roofs and a high-tech basement command in the capital of Kabul.

“Once it’s finished, it will be a permanent and a very significant illustration of the United State’s support for Afghanistan,” Afghan Defense Minister Abdul Rahim Wardak said in an interview, the Washington Post reported.

The United States is still working its way through a $10 billion menu of construction projects aimed at bolstering the Afghan security forces. Of the 1,150 buildings planned, more than 600 have been completed, with a total value of $4 billion.

In addition to new headquarters for the Defense Ministry, the United States is building headquarters in Kabul for the Interior Ministry, which oversees the Afghan police, at a price tag of $54 million.

They are also building a $102 million base for the military’s 201st Corps in eastern Afghanistan.

Meanwhile, a man wearing an Afghan police uniform shot dead three British soldiers at a checkpoint in Afghanistan on July 1, Britain’s Defense Ministry said yesterday. The assailant was injured and detained, a Defense Ministry spokesman said. Their deaths take the number of British military personnel killed in Afghanistan since operations began in 2001 to 422.

NATO-led forces have suffered a string of attacks by members of Afghanistan’s security services on foreign troops and their mentors, adding to pressure on some countries to withdraw.