A look at some of the causes for the recent oil price increase. by jposty
(libertarian)
Monday, April 21, 2008
Oil prices jumped to a new high of $117.40 a barrel in the wake of a rocket attack on a Japanese oil tanker and OPEC's refusal to increase crude supply.
Takayama the 150,000 ton tanker was attacked off the coast of Yemen in the Gulf of Aden. None of the crew were injured, however hundreds of gallons of oil leaked into the gulf until the ship's tanks were repaired. The scenario is vaguely reminiscent of the U.S.S. Cole attack.
Oil prices also jumped in the wake of an attack on a shell pipeline by the Movement for the Emancipation of the Niger Delta. Attacks since 2006 have cut the country's exports by nearly 1/3, most of which come to America.
To make matters worse, OPEC in a conference this past weekend stated they are unlikely to increase oil production due to an unsure future over oil demand.
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