Yemeni Oil Prices Hit Highest Level Since Exports Began In 1981 - $79.24/bbl

Last week, Yemeni crude oil reached the highest price since Yemen started exporting crude oil in 1981. Crude oil price in Masila, Hadhramout rose to $77.49 per barrel and Marib’s oil price per barrel rose to $79.24, said Khalid Bahah, Minister of Oil and Minerals. This increase is due to the stopping of oil production in Nigeria and the low supply of OPEC which causes fears of an international oil supply shortage, Bahah said. Marib’s crude oil price is higher than Masila’s price because it is lighter than Masila crude oil.

The lighter crude oil, the higher prices, said Abdulmalik al-Amah, Deputy Minister of Oil and Minerals. “Yemen will benefit from the increased oil prices and will increase the production of Yemeni oil which has been in decline lately. This increase will also increase the public budget of Yemen,” said Professor Taha al-Fossayal of Sana’a University. In a meeting on Sunday, the Oil and Development Committee in Parliament discussed new trends of oil sharing production agreements, especially in the gas sector. Deputy Minister of Oil and Minerals Abdul-Malik al-Amah said that the meeting aimed to amend and improve conditions of contracts in the oil and gas sector.

EDIT

http://www.yobserver.com/business-and-economy/10012575.html

As is hurricane season.

I think that the oil interests are looking for some major demand destruction to happen soon. It gave them a couple decades of oil industry dominance after the OPEC boycott, and even though they blundered into their good luck back then, they probably think they can engineer a repeat performance.

It was into this gap that the Texas "Cowboy" political clique, of which the present administration is a part, extended its reach.

It would be bad news, though. We would get maybe five to eight years of stability with a major recession as the price tag. It would halt non-fossil-fuel development for that time. And the major oil fields would be well-established in their declines by the time the next round of crises emerged.

--p!