CNBC Analyst Blames Israeli Minister’s Comments for Oil Price Spike
Today's dramatic $6-a-barrel spike in oil has been blamed on a couple of factors - a forecast by Morgan Stanley (NYSE:MS) claiming oil would hit $150 a barrel by July and a weakening dollar off news unemployment increased half a percent for the month of May.
But CNBC contributor John Kilduff, who is also the vice president of risk management for MF Global (NYSE:MF), told viewers on the June 6 "Squawk on the Street" geopolitical factors, specifically remarks from an Israeli official about attacking a nuclear facility in Iran, is behind the spike.
"[W]hat's really lit up this market big time here is, which hasn't been really mentioned. I haven't heard too much and I'm surprised at, is deputy minister in Israel said this morning that an attack on Iran's nuclear facilities is quote, ‘unavoidable,'" said Kilduff on CNBC's "Squawk on the Street."
"This is one of Ehud Olmert's deputies - leading deputies, and Israel having a track record in this area, the market has jumped all over this comment," he said.
Kilduff was referring to comments by Israeli Transport Minister Shaul Mofaz published in the Israeli newspaper, Yedioth Ahronoth.
"If Iran continues with its programme for developing nuclear weapons, we will attack it. The sanctions are ineffective," Mofaz told the Israeli newspaper, according to a June 6 Reuters article. "Attacking Iran, in order to stop its nuclear plans, will be unavoidable."
In May, Kilduff predicted the price of oil would top out at $138 before retreating.