Word: crudes
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...bunch of ragtag local gunmen who had improbably gotten lucky. But the pirates of Somalia proved they have more than dumb luck going for them last Saturday, when they seized the Saudi supertanker MV Sirius Star and its cargo of more than $100 million worth of crude oil. This occurred despite the attention of navies from the U.S., NATO and others that were patrolling the area to protect shipping. (The Ukrainian vessel, MV Faina, remains one of 11 captive vessels currently moored off pirate ports as ransom negotiations continue...
...pirates are lured by the booty. Almost half of the world's crude is transported by sea, and much of it passes Somalia every day. Insurance rates for shipping in the region are rising, and some vessels are taking longer routes around Africa to avoid the area. Because shippers abhor uncertainty and the risk it entails, they have been paying the ransoms - up to $2 million - demanded by the pirates. (And insurance companies can take comfort in their actuarial charts: only 1 in 600 ships in the area gets attacked...
Many observers regard Karzai's announcement as a piece of crude political theater in preparation for next fall's presidential election. Xenophobia has always proved popular in Afghan politics, so by appearing defiant Karzai can hope to gain more support, which has been steadily diminishing over frustration with his government's inability to provide security or development. In addition, Karzai can no longer be assured of unwavering U.S. support once the new Administration comes in. In 2004 Karzai benefited from U.S. backing in the country's first election, but President-elect Barack Obama has been clear about his dissatisfaction with...
...pocket the difference. Three days after oil peaked, as it still threatened new all-time highs, the New York Mercantile Exchange (NYMEX) called margin on SemGroup, forcing the firm to put up more cash collateral to back its losing positions. Unable to raise the capital, SemGroup sold its entire crude-oil futures position the very next day to Barclays investment bank. SemGroup posted a $2.4 billion loss in the process, forcing the company into bankruptcy...
Given that SemGroup lost that much money as oil prices soared, it must have amassed a short position of at least 100 million bbl. of crude - that's about five times what the U.S. has on hand at any given moment. Had SemGroup bought back the oil on the open market, oil prices would have continued to skyrocket, feeding off the frenzy. Fortunately for consumers, Barclays was ready to assume SemGroup's position...