Oil prices rise on Algerian hostage drama
The country is the No. 4 crude oil producer in Africa. Traders worry about supply issues and political instability in the region.
According to Bloomberg News, oil futures for February delivery climbed as high as $95.43 on the New York Mercantile Exchange, the highest intra-day price since Sept. 19. Traders were reacting to better-than-expected housing start data and last week's drop in applications for unemployment benefits, which was the lowest since January 2008, the news service says.
Traders are also worried about political instability in Algeria following reports that six foreign hostages and eight of their captors were killed in a botched rescue attempt at a remote gas plant. Other reports say 50 hostages managed to escape. Some hostages continue to be held by gunmen aligned with Mokhtar Belmokhtar, a senior commander of al-Qaeda in the Islamic Maghreb until late last year, according to the BBC.
According to the U.S. Energy Information Administration, Algeria was was the fourth-largest crude oil producer in Africa in 2010 after Nigeria, Angola, and Libya. Anadarko (APC), BP (BP) and ConocoPhilips (COP) are among the foreign firms with investments in the country. The country also is a leading producer of natural gas.
Of course, the last thing the fragile economic recovery needs is a huge spike in oil prices.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr
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"The country is the No. 4 oil producer in the world. Traders worry about supply issues and political instability in the region."
And what exactly does this have to do with oil prices at this point in time?? Reports came out a few weeks ago stating the the U.S. supplies were up, well above average for this time of year. The rest of the world also is well-supplied due to low demand, i.e., crappy economy. What happened to 'supply and demand'?? The traders, oil producers, and refineries are screwing us, end of story.
Right! My dog crapped in a different part of the yard this morning, causing immediate global instability and an immediate threat to global oil supplies........
STOP PAPER PURCHASES OF OIL!!! FORCE DELIVERY OF PURCHASED OIL!!!!
The story a couple of days ago says that "gas prices are going down" and that was the day after the story read "gas prices going up". Such efn bull$$hit!
I am sick of it!
People looking for "suppy/demand" to rule the pricing of commodities are going to be dissapointed. The only rule in commodities is the price has to MOVE. Up or down, doesn't really matter. Some are betting long, some betting short. It's just the way it is.
F**KED AGAIN! Do your asses not hurt people from the screwing we keep getting from the oil co. & govt.?
Mine sure does!
A dog pee'd in the ocean and the price of oil raised 12%, they were afraid he contaminated the water!
drill morer oil the us stop stealing from us tax payers
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The idea of US crude being a shelter from turmoil abroad may not be as far fetched as it seems.
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