Hello Snowshoe, <<Am I being negative enough for your scenario? <g>>> No, not enough, because you didn't mention the sort of events that could roll the indices back to 1990.
We will see if Maurice is right about oil prices dropping to USD 2/barrel.
stratfor.biz
Yemen Blast: New Phase in Anti-Terrorism War?
Oct 06, 2002
Unknown assailants apparently rammed a small boat packed with explosives into a French-owned oil supertanker as it pulled into Ash Shihr port in eastern Yemen, approximately 350 miles east of Aden, on Oct. 6. The tanker -- the Limburg -- burst into flames and now reportedly is sinking into the Arabian Sea.
Captain Peter Raes, managing director of France Ship, told the BBC that a junior officer had seen a small craft approaching quickly and believed the two vessels touched prior to the explosion. The blast blew a hole in the side of the new, double-hulled ship, which was almost motionless in the water. An onboard fire or oil leak have been ruled out as possible causes, and Raes said the type of crude oil that the Limburg was carrying was not particularly flammable.
After initially backing the claims of the Limburg crew, French and U.S. officials adopted the "wait-and-see" approach taken by the government of Yemen as to the cause of the explosion. However, Reuters -- quoting an unnamed official source in Paris -- reported that France had strong indications that the blast was the result of an attack.
The incident will have significant ramifications for the U.S. war on terrorism, the potential U.S. war against Iraq, U.S.-European relations and European involvement in the anti-terrorism campaign. It also will send oil prices -- already boosted by a war premium -- soaring.
It remains unclear who the attackers were, or if any survived. The method of attack, the target chosen and the location -- similar yet different in some ways to previous al Qaeda strikes -- all point to local militants tied to al Qaeda rather than to a centrally planned al Qaeda operation. Yemen's eastern Hadramout region is the ancestral home of Osama bin Laden, and the area traditionally has been beyond the influence of the government in Sana'a.
The method of attack mirrors the 2000 bombing of the USS Cole in Aden, and the strike comes just days before the two-year anniversary of that incident. However, al Qaeda itself has never attacked on significant anniversaries, and the anniversary of the Cole bombing is of importance to few other than Yemen and the United States.
Finally, al Qaeda has largely refrained from attacking oil infrastructure. By decree, bin Laden has banned any assaults on oil, since it is the heritage of the Arab nations. Although the attack was technically against a European oil asset, the backlash will impact the entire Middle Eastern energy industry. If al Qaeda was directly involved, this would signals a change in the rules of engagement and could escalate the battle against the militant network.
No matter who is responsible, the incident will enrage the European business community and help to lock in European participation in the U.S. war on terrorism.
European commitment to that war has been complicated. Although European governments have shared intelligence with Washington -- and French, German and British warships are patrolling the waters of the Arabian Sea in search of al Qaeda members fleeing Afghanistan -- most states have been reluctant to jump into the front lines. That now will change, but it also could make the European argument against a U.S. attack on Iraq even more vehement as these governments try to keep the focus on the war against terrorism.
The French supertanker was likely a target of opportunity and not chosen specifically because it was French. It is possible that the name -- which closely resembles that of American aviator Charles Lindburgh -- made the attackers think it was a U.S. vessel. In any event, an attack against an oil tanker will transform Europe's interest in fighting the anti-terrorism war. The continent gets much of its oil from the Middle East -- and with a European-wide economic slowdown, it cannot afford any threat to strategic energy supplies.
Another outcome may be a shift in support from Europe's powerful environmental groups. If environmental damage becomes a consequence of terrorist strikes, environmental political parties such as Germany's Greens are more likely to back their governments' efforts to break al Qaeda and its allies.
However, the most significant aspect of the latest attack is that U.S. intelligence missed it.
Despite the U.S. and allied military presence throughout the region -- and intelligence-sharing by many Middle Eastern governments, particularly that in Yemen -- Washington did not anticipate the supertanker attack. Indeed, in U.S. President George W. Bush scaled back the terrorism assessment alert status in late September from "high" to "elevated," saying the al Qaeda network had been disrupted.
The implication is clear: The United States is flying blind in the Middle East.
It will be months or years if ever before it becomes clear just who was behind the Oct. 6 assault. As the days and weeks pass, however, the fallout will reverberate throughout the globe. It will be especially significant for Europe and its relationship with the United States in their joint battle against terrorism. |
