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Mon 12 Jan, 2009 11:18 am
Hey! What do you think is the reason for new hostilities in the Middle East, I mean the aggression of Israel against Gaza Strip? Did you happen to think that was an attempt of the region’s oil-producing countries (most likely Saudi Arabia) to level up oil prices over again. It has been known long ago already that military conflicts and general warfare act to rise oil prices as it makes it harder to produce oil and deliver it to the consumer. Mind it, since December 27, when Israel attacked Gaza Strip in return of fire of Islamic extremists in Gaza, oil rose in price by almost 20 per cent! There is high probability that Iran will also get involved in the conflict soon as this country has sort of liabilities to the Moslem world. When this occurs, oil price will advance even faster! When oil prices are at acceptable level so far, I think it is advisable for oil consuming countries to take China for a model to lay in the supply of oil. Leave this undone, then they will have to buy oil at the price of $200 instead of today’s $42.