We have been talking of oil price rise for quite some time now. Every day some investment banker or agency comes out with next level prediction of crude prices. It was not long ago that OPEC was of the opinion that crude price of USD 60/bl is reasonable enough for them. Today at USD 143/bl also OPEC is not happy. The recent OPEC meeting in Saudi Arabia was just to establish the “truth” that producing nations are doing there best to keep the supplies balanced but it is “speculators” who are spoiling everything.
I do agree with OPEC members on this version … eventually the wealth which is getting generated by unprecedented rise in crude is being used to take the rally further by same countries. The unwarranted construction activity in Gulf is one example of forcing steel, cement and manpower costs northwards. All this at the end of day gets added to the economic cycle and returns to haunt the oil markets in terms of speculation money.
Creating soft loan pool of US$ 1bn for poor countries to afford oil is nothing but making them slaves in long run. I am sure these loans would be used by OPEC (most of them are without their own food) to squeeze the poor nations into giving away their lands for cultivation by OPEC countries.
Another area of concern is geopolitics. Israel (read with US support) and Iran have been helping the crude achieve new levels every other day. It is paramount important that the world is not forced into recession by all these forces together.
Oil should be world wealth and not under few people; no country in the world should be allowed to use oil as weapon against other countries; it is must that so called superpower USA stops behaving irrationally and keep the middle east region on fire all the time. World is nothing but global village now and actions of one affect all.