Triple threat

So far, OPEC looks unlikely to slash oil output at Wednesday’s meeting. The Saudis are against a production cut and, generally speaking, what they say goes.
It’s not surprising given that crude oil’s benchmark price is hanging around an expensive $62 a barrel. Cutting production would send prices soaring even higher in the short term, giving an OPEC a black eye in the public relations department.
Even Saudi Arabia’s oil minister, Ali Naimi, has said there’s no reason for oil to be so expensive. In February, Naimi told an energy conference in Houston that, based on demand, oil costs about $15 too much. That translates to a fair price of around wholesale nba jerseys $48 per barrel by his estimation.
So what’s causing $60-plus oil? Fear.
Traders and energy analysts worry about a disruption in the flow of oil from a terrorist attack or political maneuver, such as one country cutting off supplies to another as punishment.
Venezuela continues to threaten just such a move against the U.S., which is its biggest customer. Finding an energy analyst who actually believes Venezuela will made good on that kind of threat is wholesale mlb jerseys tough, though.
But it all cheap mlb jerseys makes what countries like Venezuela, Iran and Nigeria have to say about oil production so interesting. Together, these three OPEC nations constitute something of a triple threat.
They have been among the most hawkish when it comes to production cuts and voicing concerns about a spring oversupply. But they are also the very nations where political unrest, shape-shifting tax regimes and the hot-and-heavy wholesale mlb jerseys pursuit of nukes have helped put Sidney that so-called ”fear premium” into the price of crude.
Venezuela, which frequently wants to slash production to bolster prices, is pushing for a cut.
Iran stopped short of calling for cuts, but urged members not to pump oil above and beyond existing quotas. OPEC isn’t the only important Iran-related meeting going down in Vienna this week. The International Atomic Energy Agency has convened here to consider what to do about Iran’s pursuit of a nuclear program. The IAEA is the nuclear watchdog for the United Nations and could vote to haul Iran in front of the U.N. Security Council. If anything could send oil prices soaring, that would do it.
Then there’s Nigeria.
Oil minister Edmund Daukoru told the National Press Club in Washington pour last week that there’s too much oil on the market. An extra 2 Gen? million barrels a day, in fact.
But Nigeria’s production has fallen since the start of the year as more than a dozen foreign oil workers have been kidnapped by militants who are also blowing up pipelines and attacking export terminals, effectively shutting down the flow of almost 500,000 barrels of oil per day.
This new rebel group, which calls itself the Movement for the Emancipation for blast the Niger Delta, accuses Nigeria’s government of hording oil wholesale jerseys dollars prize instead of enriching the local community where energy back companies operate.
The militants say they won’t stop the attacks until the corruption stops. Their latest threat is to shut in another 1 million barrels of oil per day this month.
Nigeria doesn’t need to push for a production cut at Wednesday’s meeting. Rebel forces appear to be doing it for them.