So far there has been little evidence that the "war" between Georgia and Russia has done anything of substance to increase the price of oil.
At the beginning of the conflict, there was a concern that the movement of oil through Russia might be impeded.
But, now Russia is planning to put nuclear war heads on some of the weapons of its Baltic Fleet, upping its bet that it can menace the region and control its political fate. For the economy and oil prices, the effect may be immediate.
According to TheTimes, "The warnings came 24 hours after Russia told Poland that it could face a nuclear strike for agreeing to let the United States station components of the missile defense shield on its soil."
The Baltic Fleet is relatively near norther Germany, Scandinavia, and not far from the North Sea. If oil does not move up on the news, crude traders lack the sense God gave them.
Russia is pushing most of its chips into the center of the table. Oil is an important part of the pot. On its own, Russia has a huge amount of crude reserves of its own. It could begin to bargain with the West using that as well.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks