Worldwide loss of oil supply heightens Syria attack risk

Daily Telegraph ^ | 08/29/2013 | Ambrose Evans-Pritchard

[TexGrill]

“We are currently witnessing the collapse of state in Libya, and the country is getting closer to local wars for oil revenues,” said the Swiss-based group Petromatrix.

The country’s oil ministry said production has slumped to an average of 300,000 barrels per day (b/d) in August, down by more than four-fifths from its peak after the overthrow of the Gaddafi regime two years ago.

“Militia groups are behaving like terrorists, using control over oil as political leverage to extract concessions,” said Dr Elizabeth Stephens, head of political risk at insurers Jardine Lloyd Thompson. Port closures and strikes have compounded the damage but the deeper story is the disintegration of political authority.

Libya is the most extreme example of political mayhem around the world disrupting output and causing a chronic shortfall in oil supply. Production has slumped in Iraq, Nigeria, Iran, Yemen and Syria itself, each for different reasons.

This has cut daily global supply by 1.1m over the past year to 92m, explaining why Brent crude prices have remained stubbornly high despite the slump in Europe and China’s slowdown. To compound the problem, Libya’s oil is some of the highest quality produced in the Middle East and the kind preferred by European refiners. Jitters over Syria have already pushed Brent to $115, near levels that typically erode confidence and inflict serious economic damage.

[TexGrill]

Global business tip

[livius]

Obama’s incredible stupidity and ideological obsession have created what is probably the most dangerous situation we have ever had in the Middle East and the entire world is beginning to feel the impact now.

[txrefugee]

Let Europe fight these wars for oil, and let America become energy independent. Over the decades, we’ve rescued the Continent to the point that we are broke. It’s time these buzzards take care of themselves instead of depending on Uncle Sap.

[flaglady47]

“Let Europe fight these wars for oil, and let America become energy independent. Over the decades, we’ve rescued the Continent to the point that we are broke. It’s time these buzzards take care of themselves instead of depending on Uncle Sap.”

Bingo. However, in order to achieve that end, we must get the Dems out of office in the mid-terms so that we can stop Obama from doing any more damage to our country and our oil independence. Then get him out of office in 2016 and then concentrate on rebuilding our country after his destructive rule has come to an end. If we retake the Senate, perhaps we can speed that process up by impeaching him, as he has already committed a slew of impeachable offenses.

[Wyatt's Torch]

Worldwide oil outages:

[1010RD]

Libya is the most extreme example of political mayhem around the world... caused by Obama’s policies and not just him, but the entire Democratic Party.