Oil futures prices reached record high levels following Russian government orders to stop oil sales and production at Yukos Oil's four main production units. The largest Russian oil exporting company said today that the new government orders forbids the sale of properties at its main production unit in Siberia, effectively banning oil sales and halting production. The reported output halt at Yukos Oil is likely to further increase the underlying supply concerns in the global oil markets. Moreover, Yukos Oil warned today regarding the stopping of shipments through rail transport by the second week of August this year, in the event of the government not allowing access to the company's frozen bank accounts. Oil prices briefly soared over $43 a barrel before settling back at the end of trading.
The oil market also has a Venezualan recall vote in August which could stir up the kind of unrest that shut down Venezualan oil production last year, as well as a threatened strike by oil workers in Nigeria. Record oil prices will be felt by the economy and by the consumer before the election rolls around.