The US Congress has voted to brand OPEC’s efforts to control world oil prices illegal. And with support of the legislation strong in the Senate as well, President Bush could soon be thrust into the unenviable position of siding with OPEC producers at a time of painfully high gasoline prices in the US.
Oil Price
Oil Price Rises on Back of Nigerian Hostage Taking
If the oil price was not jittery enough over the Iranian seizure of 15 British sailors and marines, the news from Nigeria over the last few days has not helped stabilise the increasingly volatile oil price. Early on Saturday morning militant youths seized the Scottish off-shore installation manager for the Bulford Dolphin rig that is … Read More
Oil Reaches Six-Month High Over Gulf Standoff
The increasingly tense standoff between Iran and the UK over the fate of 15 British sailors and marines captured by Iran has helped drive crude oil prices to a six-month high. Traders sent the price of crude oil up by 3 percent, to $66.03 a barrel in New York yesterday, after Iran put off a … Read More
Plans to Beat Oil Bottleneck
Gulf governments are planning to build oil pipelines that will bypass the world’s most vulnerable energy choke point, the Strait of Hormuz, aiming to avoid possible Iranian threats to global oil shipments. Around two-fifths of the world’s traded oil is shipped by tanker through the Hormuz Strait. But the 54km wide passage is highly vulnerable … Read More
OECD Consumption Drops For First Time in Decades
Here’s one that few saw coming: According the International Energy Agency as reported by the Wall St. Journal (subscription), developed country consumption of oil dropped .6% in 2006. According to the Journal: “Though the decline appears small, it marks the first annual drop in more than 20 years among the OECD countries, which drain close … Read More
Saudi’s Increase Spare Capacity to Offset Iranian Influence
Saudi Arabia’s growing fear of Iranian influence in the Middle East may driving the world’s largest crude oil exporter to prepare a more aggressive long-term political oil strategy that would counter the Iranian ascendancy. According to Dow Jones, “under a new, accelerated production program, the kingdom could increase its spare oil drilling capacity to at … Read More
Egypt Seeks Energy Ties with Other African States
Egypt has said it is putting all its effort and expertise in the oil and natural gas sectors to serve African countries. Egyptian Minister Sameh Fahmi made the promise whilst addressing the first conference of oil and energy ministers of the African Union member states.
Angola and Sudan to follow Ecuador to Opec
Angola and Sudan have followed Ecuador in saying they may join Opec, a move that would boost the power of the oil cartel, add impetus to resource nationalism and put international oil companies on their guard. Angola, Sudan and Ecuador would boost Opec output by 2-million barrels a day, or 6%, and bring 10,5-billion barrels … Read More
Saudis Aiming For A “Fair and Stable” Oil Price
Top oil exporter Saudi Arabia said today Opec was striving for a “fair and stable” oil price, of around US$60 for US crude. Wary of supposed high fuel stockpiles in the world’s biggest fuel consumer the United States, some Opec ministers have raised the possibility of cutting output again in December, deepening a 1.2 million … Read More
U.S. Energy Secretary Says High Oil Prices Wreck Economies
U.S. Secretary of Energy Samuel Bodman has warned that high oil prices will wreck economies especially in the developing world. In remarks before the annual conference of the Middle East Institute, Secretary Bodman said worldwide demand for energy is expected to increase over 70 per cent over the next quarter-century, with devastating consequences. “It is … Read More