Here’s what sounds on the surface like an ominous report on the immediate future of oil prices: an attack on Shell pipelines in Nigeria.
As the article points out, these attacks have been a partial driver for the run-up in oil prices on the commodities markets. So, I cringed a little bit this morning as I took a peek at the latest price.
Imagine my surprise at 9:11 a.m. when I saw oil is down $1.06 according to Kansas.com’s ticker. An hour later, oil was down $3.11.
Now, I’m sure all of you remember the raft of lectures that have been delivered by government energy officials and oil company executives: It’s supply and demand, stupid, along with all the uncertainty surrounding the oil distribution system.
Uh-huh.
Sure, there’s plenty of time today for speculators – the real driver behind the run-up – to ratchet today’s trading into the stratosphere.
But the early morning today brings yet another blow to the credibility of the alibis that flowed like crude as per-barrel prices doubled over the last year.