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Mounting Tensions: Ukraine and Gaza

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The two problems we've been focusing on this past week both had false endings. Last week, we were told that Israel and Gaza were talking about a cease-fire. Now, news reports have more Israeli troops pushing into Gaza City. More than 90,000 people have left their homes, and an estmated 900 people have died in the conflict. We were also expecting Russia to begin shipping natural gas supplies through Ukraine again this morning. That hasn't happened either. Russia is now claiming that Ukraine is purposefully blocking supplies. Hundreds of thousands of people have been without gas for a full week. So, what happens next? Some analysts are saying the Israeli-Palestine conflict could go on for some time. But some Gaza survivors have been without water for four days and the humanitarian situation is worsening by the minute. Russia will only begin pumping large amounts of natural gas if EU monitors determine that Ukraine isn't stealing any for domestic consumption. This test of the taps has put the "truce" back at square one. Natural gas sold on the NYMEX has been dropping for the past five trading days. But natural gas sold on London's ICE ended higher today. The spread between WTI oil and ICE Brent crude oil is about $6.50, most likely due to these two conflicts. So Europe is paying more for oil and gas as Russia and Ukraine lock horns, and as Israel continues to pound the Gaza Strip. We're just starting to get into the middle of winter, too. Yesterday, I told you Prague was going to hit an overnight low of 15 degreed F. Right now, it's 9:00pm, and it feels like 12 degrees F.
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