Former President Richard Nixon in an address to the nation about national energy policy on November 25, 1973 was for steps America must take to solve what had almost become intractable problem. It was about the sudden cutoff of oil from the Middle East that had turned the serious energy shortages of that winter into a major energy crisis. It was an oil embargo.

There were fatalities associated with a Nigerian National Petroleum Corporation, NNPC oil pipeline inferno in Osisioma Ngwa, in Abia State last week. Osisioma is close to the NNPC Depot in Aba. NNPC’s preliminary report indicated alleged activities of vandals who hacked into the line to intercept flow of premium motor spirit, PMS in its System 2E pipeline network from Port Harcourt to Aba.

Last week oil prices spiked to an all time high in four years since 2014.  The international benchmark ICE Brent for December settled at US$86.29 per barrel Wednesday October 3, up US$1.49 per barrel from Tuesday, October 2. The West Texas Intermediate, WTI crude the U.S. benchmark oil futures, rose by US$1.18 per barrel to settle at US$76.41 a barrel on the New York Mercantile Exchange, NYMEX. With rising demand and no spare capacity to be deployed to boost global supply the bullish prediction of oil prices hitting the US$100 mark appear imminent. Many believe that another spike may cripple the industry. The oil market looks up to Saudi Arabia, its allies in  the Organization of the Petroleum Exporting Countries, OPEC and Russia would do to calm market supply worries that have contributed to a rise in oil prices above US$86 a barrel last week.   

German luxury car-maker Porsche last week announced that it has stopped the manufacture of diesel models Cayenne and Macan

In the early days of this column, some in the name of political pundits thought it was a fifth column. It was later realized that the column was panchromatic in nature with all the colors and all the shades all the time.

Speculation on the barrel which is the bane of the oil industry has come alive. Oil prices rose Tuesday on news that Saudi Arabia is comfortable with Brent above US$80 per barrel, offsetting the concerns that have been building over the U.S.-China trade war. The Trump administration is escalating the trade war with China, by announcing US$200 billion in tariffs on Chinese goods. The tariffs will start at 10 percent and go into effect next Monday September 24, and rise to 25 percent by January 1. An additional US$267 billion in tariffs on consumer goods are in the works. China would retaliate with tariffs on U.S. oil and gas exports to put a dent in crude oil exports.

The price of oil is still heading up. Crude oil prices for Wednesday rose with the Brent trading at $79.92 while WTI traded at $70.93.

African leaders converged on Beijing, China from September 3-4, 2018, for the Forum on China-Africa Cooperation, FOCAC. This is the third time the summit was held since it was launched in Beijing in 2000. The Chinese President Xi Jinping promised US$60 billion in both aids and loans to the African continent. The zero interest loans are to fund infrastructure investments in Africa.

The heat from the United States is on and many wondered why Turkey is becoming the victim. Although it is not a significant producer or consumer of oil, it is naturally well located in the geopolitical equation.  Turkey in southeastern Europe and Southwest Asia is bordered by Greece, the Black Sea, Georgia, Armenia, Iran, Iraq, Syria, the Mediterranean Sea, the Aegean Sea, and Bulgaria. 

We are back to oil volatility with its conflicting signals on global markets. Countries policies greatly affect the demand and supply market. The President Donald Trump’s America first energy policy may have started having a global effect on economies.