Oil is now so cheap pirates can’t be bothered to steal it

As the price of oil falls, so have numberrs of pirate attacks

Oil prices have been falling rapidly since mid-2014 to the point where a barrel of Brent crude is now at about $30.

It’s great news for consumers but less than ideal conditions for oil producers and those who depend on them.

Some of the unlikely victims of the oil price crash are those who steal oil. In fact, oil has become so cheap that pirates have stopped stealing it.

In an interview with Bloomberg, Florentina Adenike Ukonga, the executive secretary of the Gulf of Guinea Commission said: “With oil at a low bottom price of below $30 per barrel, piracy is no longer such a profitable business as it was when prices hit $106 a barrel a few years ago.”

A report by Oceans Beyond Piracy said pirate attacks were hard to pull off, so the fact the cargo has fallen in value significantly, is off-putting for the pirates. It said:

“It’s likely that the interest in tanker vessels as a main target for piracy stems from the high value of the cargo.

“However, the higher level of expertise needed to carry out a successful oil theft limits the success rate of such attacks.”

 

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