Increase of oil shipping fees..Increase of prices.. Where is the OPEC?

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Increase of oil shipping fees.. Increase of prices.. Where is the OPEC?

by Ahmed ElHouni

The increase of oil prices can not be attributed to lowering the production or the decrease of the American reserves, but it can be attributed to one main reason and two secondary ones which neither the OPEC nor its consultants are aware of being indulged in a sleepy march like the Arab League. The main reason is the tremendous increase of the shipping costs due to the drowning of some big oil vessels that were behind crises in many countries as a result of contaminating their coasts with crude oil. The insurance companies, in view of the big compensations they paid to the ship owners, decided unanimously, with the support of Lloyds institution which controls the insurance world, to raise the shipping fees, especially those of oil, and not to accept insurances on more than 15-year tankers. This unfair resolution caused a lot of damages, that reached bankruptcy, to the owners of the tankers whose age exceeded the agreed upon limit and caused a 50% increase in the freight fees. This dangerous procedure, which is passed without consulting the OPEC, is responsible for raising the oil prices. Unfortunately, it was ignored by the media services verifying the wrong beliefs that the producing countries and the decrease of oil supplies are responsible for raising the prices.

In addition to the main reason, there are two minor reasons represented in, according to Venezuela, upsurges in the refinery process and speculations in the oil markets.

We previously called upon the OPEC and the oil ministers to give the petroleum information its due interest by establishing an advanced news agency. It will be a source of information about the OPEC, its activities and its plans. It will be responsible for explaining the facts and refuting the allegations of the other media services. Burying heads in sand will open the door ajar for America and others to address unfair allegations.

http://www.alarab.co.uk/TodayPages/opec.html

-- Martin Thompson (mthom1927@aol.com), November 30, 2000


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