One thing you will hear more about this year is ‘geo-political risk’ and it spans many sectors and countries. One example that instantly jumps to mind is Nigeria and the Niger Delta. Oil hit $100 a barrell and this was blamed on ‘geo-political risk’ because of the likes of MEND who are the ‘movement for the emancipation of the niger delta’ (mentioned in a previous post), anyways, they go around bombing pipelines etc. and this causes panic in the market.
What… me worry? (famous line by Alfred E. Newman of MAD Magazine) something that really bothers me is things like oil at a hundred dollars a barrell because of a ‘supposed fear’ in the market, for every time something happens that threatens oil has there ever been an actual hold put on supply? (other than in the 70’s and we can’t really compare the new millenium to the way it was back then)
So basically the oil industry has a permanent choke hold on prices because all they have to do is prepetually cry wolf!
watch a film called ‘who …