While oil prices continue to rise, at least one man thinks
the trend won’t continue for long – if international tensions decrease and
refining capacity increases.
Light, sweet crude hit an intra day high of $75.35 on the
New York Mercantile Exchange on Monday, April 24, before dropping down to
$73.90 later in the day.
Meanwhile, Edmund Maduabebe Daukoru, president of the
Organization of Petroleum Exporting Countries, said on April 23 that prices
would fall as political tensions begin to ease.
The Associated Press reported that Daukoru, who is
also Nigeria’s oil minister, made the comments on Sunday at an International
Daukoru said that the key to lowering oil prices is to calm
the international environment and boost refining capacity, according to The
AP. Increasing output, he said, would only further clog the market.
“If we do the right things by lowering international
tensions, oil prices will definitely stabilize,” he said.
Ironically, tension and fighting in Daukoru’s own country of
Nigeria has been cited as one of the primary reasons for the increase in oil
Reuters reported that analysts are saying the
situation in Nigeria, combined with tensions in Iran, the ongoing war in Iraq
and increased demand from China and India, have all contributed to skyrocketing