Soooo.....as I just wrote the other day about oil fluctuating due to these attacks on foreign controlled oil fields....Its occurred again today. This time in Nigeria. Rebels attacked a Chevron corporate ship killing a Nigerian sailor and kidnapping six foreign oil workers. Chevron is a California based company so there is a slight possibility the kid napped may have even been Californians.
At our trading floor today at Main Street Trading, the commodities trading firm I work at, we experienced the impact of this attack. Due to this attack Chevron said it had to shut down the pumping of nearly 15,000 barrels per day. This is especially bad as we are entering summer when oil in the states is in very high demand. Those that bought their oil futures three months ago were stoked, as we made them tons of profit as oil rose 75 cents per barrel. Because of this heating oil, Brent crude and even WTI (western Texas intermediary) saw fluctuations making holders of those contracts happy. Again this is a sign of how interconnected our global economy has really become, and geopolitics are of utmost important when it comes to commodities.
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