September 13, 2007
Mexico: the “new Nigeria”?
Opec officials struggling to explain why oil promptly surged to $80 a barrel after its attempt to cool the market with a 500,000 barrel a day production increase pointed to the attacks on gas and oil installations in Mexico on Monday as part of the reason why the group’s efforts had been ineffectual.
This Reuters story points out that these attacks are a worrying sign, in a country that is one of the world’s top ten oil producers, even if it has been in decline.
As Adam Sieminski, chief energy economist of Deutsche Bank, is quoted as saying in that piece: "If it gets worse, it would likely have a more significant impact on the global markets."
