The politics of oil

OPEC President Edmund Daukoru has said OPEC cannot cut production at today’s meeting because of the geopolitical situation in the world.
In other words, cutting production wouldn’t help bring prices down because the market knows just one bad incident has the potential to disrupt oil supplies and drain the crude that is currently building up in storage tanks around the world.
The big news today coming out of Vienna won’t be what OPEC doesn’t do, but what the International Atomic Energy Agency does do. That group is meeting on Iran’s nuclear program for the last time before punting the issue to the UN Security Council.
While Iran is the top political wildcard, it’s by no means the only one.
Politics is taking a toll on oil in Daukoru’s own country, where militants angry about decades of government corruption have stepped up attacks against the oil industry, cutting off the flow of almost 500,000 barrels of oil a day.
The latest round of kidnappings by a new rebel group in Nigeria hasn’t been resolved yet either. Nine oil service workers from Willbros, which operates out of Houston, were taken off a Royal Dutch Shell project in the Niger Delta weeks ago, but only six have been released. Two Americans and one Brit remain in captivity.