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Monday, April 11, 2011

As OPEC sleeps, oil nears the tipping point

As OPEC sleeps, oil nears the tipping point
A combination of foreign unrest, Arab recalcitrance
and a plunging dollar is pushing energy prices into the danger zone.
By Anthony Mirhaydari on Mon, Apr 11, 2011


Last week, crude oil launched like an artillery rocket over the $113 handle to close at a high of $113.48. Aside from Moammar Gadhafi's attacks on Libya's oilfields, there are also concerns about upcoming elections in Nigeria -- another important oil exporter in Africa.

My comment...
Elections in Nigeria (Apr. 16th & 23rd) may disrupt oil production (as they did in 2003 & 2007) and prove to be the flash point that sends oil over $125 a barrel, a level which Deutsche Bank economists believe will tip us back into recession.

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