With the growing belief in OPEC and a coming financial recovery, “there would be no reason why the current price rally could not extend to $75 within a fairly rapid timeframe,” Mr. Horsnell wrote in his weekly overview of oil-market conditions.
Believers in oil-market fundamentals are left scratching their heads. Exxon Mobil Corp. chairman and chief executive Rex Tillerson told reporters earlier this week that he couldn’t see any reasons involving supply and demand to push up oil prices. He attributed the recent oil rally to fluctuations in the U.S. dollar and people trying to get in front of a perceived economic recovery. “But it’s just a bet on their part as to whether the green shoots have roots or not. And none of us really know yet,” he said.
I had to point out this:
The Movement for the Emancipation of the Niger Delta (MEND) said it had "put out of operation" a Chevron storage facility by destroying several pipelines that fed into it.
"This will henceforth become our standard mode of operation," the group said in a statement.
The U.S.-based Chevron Corporation could not be immediately reached for an assessment of the damage.
Nigeria's military has been clearing the western Niger Delta region in a major operation against MEND. The armed militant group demands that more of Nigeria's oil wealth be reinvested in the region instead of enriching those whom they consider corrupt politicians.
The group declared war against the government in September for what it said were unprovoked attacks. At that time, MEND destroyed several oil facilities, forcing Nigeria to cut its oil exports by as many as 1 million barrels of oil per day, or 40 percent.
Considering the jump in prices when there is a hurricane predicted, or a fire or mechanical breakdown at a refinery? Common sense dictates with as emotionally reactionary the market is? That's all it takes....
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