Apr 21, 2008

Oil woes

The price of oil hit a new high today at $117.40 per barrel in the New York Mercantile Exchange.

Fears are being stoked by an apparent rocket attack on a Japanese tanker off the coast of Yemen, rebels attacking a Nigerian pipeline last week, and an impending labor strike in Scotland that threatens to reduce world supply by 200,000 barrels per day.

Barring the Scottish news, the question must be whether the most recent news of the market's volatile relationship between attacks and price inspire more violence to affect supply?

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