It reinforces the value proosition of   SAFE  reserves,  which  with all the stupidity going on in the  Middle  East  will catch the eye of the   Koreans,   Malaysians,  Chinese  ,and yes,   big  American  producers as well.   Celtic take over   XOM   can take out  half the big boys  with its market cap alone.

   Yes the last rise to  16 plus was triggered     by  QE3  , there were reports on  CNBC all day that   Bernanke would  supersize the monthly bond   buybacks,  in essence   giving us  QE  4   but not formally  announced  like last time.  Some within   the  FED  are   wanting rates  to stay  low til    2020.  Now  that  would cause a massive devaluation of the dollar.

The other point is  all  price spikes in oil  have   had    world conflict as the initial catalyst  now.    With the  election over  the media  is finally looking at the   Middle  East again  and  saying  "   Oh no  this  aint good".  Talk   of    ground force in vasion of the   Gaza strip  by  Israel,  they are calling up  RESERVISTS.     Embassies  shut down and dismissed,  you  have the beginning of  a  conflict that will wildly escalte out of control.   When  Hamas talks  about  " opening the gates of hell  "  and the  Israeli  Defense  Force saying    no  "  Hamas leader should   be   sticking his head out above ground"   thats a sign that diplomacy is dead  anda declaration of war   has ensued.  At all  times  of   conflict,  remember the last  Gaza invasion of 2008     (   Penn  West was   well over 30  then   ), all the world focuses  on  securing   LONG  TERM  SECURE  RESERVES. Saudi  Arabia  , number one,  Venezuela   2, Canada   3,   hmmmm,   pretty sure   the   WCSB   will  be  pursued by any one with a brain  .  And remember also,   seeing the madness   of  NYC with  gas rations is enough to send shivers  down the spines of most autocratic ASIAN  LEADERS.


     I    also  find it ammusing  that  just as the  minute defense cuts in the States  are about to kick in  that   the escalation  intensifies.    Me thinks   defense spending   and all else will  be ramped up   now more than ever,  more defecit borrowing,    weaker dollar, more   QE   and  untimately     a  big shot in the arm  to  Canadian  producers.


Now  just pass   Nexen  and  Progress deals and it wil l be more than just a short squeeze, could be a quick ride to 2008 levels. Remember   oil does  what no one ever expects it to  do!!!!!!