Friday, May 23, 2008

Big oil speculators ensure that a barrel of oil crosses the $135 mark

On 22/5/2008 a barrel of oil briefly broke the $135 mark and prompted many analysts to forecast $200 for a barrel of crude by the end of the year. The high price of oil is despite the fact that more and more oil reserves are either being discovered or being improved to boost productivity. For instance during 2007, 250 million barrels of oil were found in Uganda, 8 billion barrels discovered in Brazil and technology improvement has meant that extraction of oil from Canada’s tar sands — deposits that could rival the Middle East—is commercially lucrative. Furthermore, many respectable institutions are predicting that the recession in the US and the high price of oil will dampen overall world demand for crude in 2008. These tell tale signs indicate that speculation is the main factor behind the price of crude. Big oil speculators are intentionally inflating the price of oil to strengthen the sagging value of the dollar. The fact that oil is traded in dollars is assisting the US to keep its economy afloat.


1 comment:

Saleh Abd ALLAH said...

They are doing this on purpose. The US is driving this country's economy to bankruptcy in order to scare the people, and tell everyone the only solution is to open up the borders to Canada and Mexico, and unite. This will do away with America as we know it, and we will be called the North American Union (look thatup on youtube)[].

Then we will have this new money called teh AMERO. The bill was passed in 2005 or 2006 already to have this new money. They will do away with the dollar as we know it. Mexico and Canada will alluse the Amero aswell. There is much more to their evil plot...

Saleh Abd Allaah
HT Bangladesh