Oil Hits an All Time High Over Global Violence - 7/13/08

Oil jumped to an all time record of $147 a barrel after Israeli war planes practiced over Iraq.  On top of this the Brazilian oil workers unit is planning a five day strike. 
 
Reports state the Israeli war planes are conducting maneuvers in Iraqi airspace using U.S. airbases.  Israel without a doubt is preparing for an attack on Iran.  Iran tested missiles this week that are capable of reaching Israel.  Iran has said it may block the Strait of Hormuz if its nuclear facilities are attacked by Israel.  The Strait of Hormuz is used to transport one fifth of the world’s crude. 

In Brazil, 4,500 employees of the state controlled Petroleo Brasileiro SA may protest on platforms in the offshore Campos Basin to get full pay for the day then return to the mainland after a 14 day shift at sea.  The basin produces 80 percent of Brazil’s oil.

In Nigeria, the Movement for the Emancipation of the Niger Delta plans to resume attacks on oil facilities beginning at midnight on July 12.  MEND’s has made attacks on pipelines and other oil related installations which has cut more than 20 percent of Nigeria’s oil exports since 2006.  MEND says it is fighting for a greater share of the oil profits for the impoverished inhabitants of the Niger Delta.  Oil from Nigeria is low-sulfur, or sweat oil, prized by U.S. refiners it produces more gasoline and distillate fuels than lower grades of oil.

If all these events take place within a few days of each other we may be looking at $175 to $200 oil in a few days!  This means $8.00 gasoline in a few months. 

The U.S. must move toward alternative energy NOW and stop pointing fingers.  Biodiesel, wind power, nuclear, solar power, electric cars all need to be utilized TODAY not in the distant future.

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