Tuesday, November 18, 2008

I'm a Cynic...



1. OPEC head: oil production cuts unlikely this month (Associated Press)

2. Hijacked Supertanker Anchors Off Somalia (New York Times)

3. World crude prices up as pirates hijack oil supertanker (National Post)

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A supertanker (Sirius Star) commissioned in March of this year falls into the hands of the Somali pirates fully loaded with $100 Million worth of crude...and the US immediately issues a statement indicating that the US Navy would not take steps to recover the goods. Meanwhile, the price of oil spikes on the news. Keep in mind that most oil carrying sea going vessels practice "unarmed assistance." That, basically, means that they have more people on watch and more hoses to water down the sides and make boarding more difficult.

Additionally, the seizure took place 100 nautical miles further out to sea than ever before by the Somalis...not to mention that they have NEVER done anything on this scale before.

But, alas. Oil stablized and remained at the current low. Well, on to plan B...look for OPEC production cuts over the holidays.

COLLUSION: Function: noun
--Etymology: Middle English, from Anglo-French, from Latin collusion-, collusio, from colludere
--Date: 14th century
: secret agreement or cooperation especially for an illegal or deceitful purpose