CNBC's Terranova: Missile Defense Decision Will Send Oil Higher
On Sept. 17, President Barack Obama surprised a lot of people and announced he was pulling the mat out from under two Eastern European allies â
âPresident Obama reeling back the Bush administrationâs plans for a missile defense shield in Eastern Europe, instead opting for a new system he says is better equipped to fend off an Iranian threat,â âFast Moneyâ host Melissa Lee said on her Sept. 17 show.
That decision combined with a decision for the United States to meet with Iran, as part of a summit of the United Nations Security Council plus
âWent long on a little bit of crude oil today when I read this story,â âFast Moneyâ panelist Joe Terranova said. âThe reason being, Oct. 1 the Iranians sit down with six other nations including the
According to Terranova, the decision to pull the missile defense shield could put an already tenuous situation between Iran and Israel even further on edge and, if history is any indication, that will send the price of crude oil higher in the long-run.
âIâve got to think the Israelis are not too happy about that development, nor are they too happy today about the development with the Obama administration,â Terranova said. âGood reason to be long oil â my opinion.â
The price of oil has settled around $72 a barrel after rising from six-year lows earlier this year. Some experts are crediting a stronger dollar for the ease in prices, which have proven volatile if uncertainty in the Middle East arises.