Shell reduces production in Nigeria

[bemildred]

Source: al Jazeera and agencies

Royal Dutch Shell has said it will suspend some crude oil deliveries after fighters sabotaged one of its pipelines in the Nembe Creek Trunk, sending oil prices rising above $126 a barrel.

The Movement for the Emancipation of the Niger Delta (Mend) said in an email on Monday that "heavily armed" fighters had attacked the pipelines in the southern Rivers state.

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Shell declared a force majeure on Tuesday - a legal clause allowing producers to miss contracted deliveries because of circumstances beyond their control - for the remainder of July, August and September.

It did not indicate the quantity of crude involved, but observers believe given that Bonny is one of Shell's two main terminals in Nigeria, it is likely to involve significant volumes.

Read more: http://english.aljazeera.net/news/africa/2008/07/2008729141830392377.html

[Tandalayo_Scheisskopf]

1. This has all the makings...

Of bullshit.

[bemildred]

2. Well, the price of oil does seem to be declining.

On the other hand, over $120 a barrel does still seem quite nice.

[Tandalayo_Scheisskopf]

3. It is declining.

It has been, steadily, for the last three weeks. Frankly, I am very skeptical about the purported military effectiveness of the MEND guerillas. For a bunch of poorly-equipped and poorly trained irregulars, they seem to be able to pull off operations that would give the SEALs pause, such as capturing and holding oil platforms 100 miles off the coast.

Also, the MEND attacks seem to have remarkable coordination with market events. Price goes down, MEND does something militarily incredible.

It all is a little too convenient.

[bemildred]

6. Eh, a bubble is a bubble.

I don't have a problem with the idea that capitalists would manipulate prices. But I also expect bubbles to pop. MEND I don't know much about, and I expect I have a lot of company in that. At this point, I would expect that those that have oil to sell would be selling as much as they can, while trying to shore up prices. MEND fits into that scenario perfectly, whether they are competent or not.

[DCKit]

7. No, no, no. It's peak oil. I read it here. n/t

[madrchsod]

4. shell has a hard time pacifying the natives

seems they do`t like shell taking their natural resources

[bbinacan]

5. I must be missing something here.

Delivery has been interrupted. No supply = no delivery. Makes sense to me.