Oil Industry Headlines: Week of January 11
In Nigeria, the Movement for the Emancipation of the Niger Delta (MEND) is stepping up attacks in an attempt to secure the release one of its leaders. Henry Okah was arrested in Angola last year on charges of arms dealing. In exchange for his release, MEND is offering to halt its attacks on the nation’s energy sector and Nigerian military. MEND’s bargaining position was recently strengthened by the revelation that it has inside contacts within the government and commercial energy sector. According to Dow Jones Newswires, MEND claimed that a recent attack on a tanker was executed with help from “militants working for oil companies and from Nigeria’s military and secret service.”
Two weeks after crude oil hit an all-time trading high of $100, China’s National Development and Reform Commission (NDRC) announced that it will not raise the government cap for oil prices. The NDRC has voiced concerns that raising prices would aggravate already-high inflation and believes that shielding the economy is the best way to maintain stability and growth. Sheltered from the impact of record oil prices, Chinese businesses and individuals are increasing their fuel consumption at a rate that many analysts say will soon cause demand to outstrip supply.
Published Thursday, January 17th, 2008 at 1:04 pm and filed under Industry News.