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World Crisis scenarios for the 21st century – Peak Oil. (update 6)

Posted by Adrian on October 29, 2007

Oil has now reached new highs of $93.00 + a barrel. A combination of a declining US dollar, geopolitical tensions between northern Iraq and Turkey and the ongoing tension between Iran and the US; over Iran’s Nuclear program. All contributing to an increase in oil prices, whether or not speculator based. The continued high oil price shows that oil, as a commodity, is becoming sought after and rare. Hence traders inflating the price, or adjusting the price to it’s correct high pricing. Will it continue upward? Yes, even regardless of geopolitical tensions. Oil is going to reach highs in price, never seen before in the history of humanity.

What sustained and escalated oil prices will do to oil dependant economies has yet to be tested, especially emerging economies like China and India.

World Crisis scenarios for the 21st century – Peak Oil. (update 6)

“The dollar fell before reports that economists forecast will show declines in housing prices and consumer confidence, bolstering speculation the Federal Reserve will cut borrowing costs this week. A lower dollar makes oil relatively cheaper in the countries using other currencies.

Tensions between Turkey and Iraq over Kurdish militants as well as over Iran’s nuclear program are helping drive oil prices higher. Iran and Iraq hold the world’s second- and third-biggest crude oil reserves, after Saudi Arabia, according to BP Plc.” Bloomberg – Worldwide

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