Oil Rallies as Roller Coaster Continues - Nigeria Moves to Stabilize Production
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On the supply front, Nigeria’s president said the country’s state-owned oil company will take over operations in the Ogoni district of southern Nigeria from a Royal Dutch Shell joint venture. President Umaru Yar’Adua made the announcement after talks with French President Nicolas Sarkozy, saying that the move will “calm down” unrest among local residents.
Violence has shut about 20% of Nigeria’s oil production since early 2006.
“The market is so concerned about supply that just about any headline can unnerve traders,” said Phil Flynn, of Alaron Trading. “Once prices began moving higher, there was a massive move to purchase futures.”
Also yesterday, the International Energy Agency said it will attend talks convened by Saudi Arabia on June 22 between producers and oil-consuming countries in an environment of record oil prices.
“We would welcome an opportunity to act collectively to reassure the market about future demand and supply balances in order to change the perception of extended tightness,” said IEA Executive Director Nobuo Tanaka.
Source: Oil Rallies as Roller Coaster Continues - Nigeria Moves to Stabilize Production
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Tags: Nicolas Sarkozy, Nigeria, Oil Futures, Oil Production, Record Oil Prices, Royal Dutch Shell, Saudi Arabia, Tanaka, Umaru Yar AduaAbout the Author
Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.