Pirates And Oil: Will Hijackings Raise The Price Of Crude?

This year has seen oil prices fly upward to record highs, but lately the trend has been much lower prices. But something could be changing that: there seem to have been increasing reports of modern-day piracy lately, including earlier this week when pirates hijacked a fully-loaded oil tanker:

The tanker evidently had about $100 million of oil aboard, and the owner is reportedly working to get the hijacked supertanker back from the pirates.

In a time when oil prices have been driven down by investors' fears of lower demand, modern-day pirates may be the thing to send prices back up, reports Bloomberg:

The hijacking of a Saudi Arabian supertanker off the east coast of Africa may spur oil and shipping companies to step up security and use alternative routes, delaying cargoes to Europe and the U.S., analysts said.

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The attacks may divert shipping away from the Gulf of Aden in favor of longer routes to Europe and North America around South Africa's Cape of Good Hope. The extra weeks of sailing and fuel consumption could drive oil and commodity prices higher, according to Chatham House.

MORE PIRATES OVER THE LAST YEAR:

::Contemporary pirates negotiate $8 million ransom for arms-laden cargo ship
::Modern-day pirates attack French luxury yacht
::Pirates attack Exxon vessel