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.
Abdullah el al-Badri, secretary-general of the Organization of Petroleum Exporting Countries, said Sunday that oil prices would likely go higher and that the group was ready to raise production if the price pressure was due to a shortage of supply _ something he doubted.
Iranian President Mahmoud Ahmadinejad, was quoted Sunday as saying the price was too low and “oil must discover its real value.”
Expect oil prices to continue breaking all historical records this summer, as a decrease in price is not in the foreseeable future.
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