The new geopolitics of crude oil March 12, 2008Posted by tkcollier in Economy & Business, Geopolitics.
Tags: Energy, Oil, Power
Khaleej Times Online – The new geopolitics of crude oil
View from a Dubai banker via Carlton Palmer – Last week was a defining moment in international relations. West Texas and North Sea Brent crude oil, the world’s light sweet crude benchmarks, soared to $105, above its inflation adjusted 1979 price of $92, when the Shah was overthrown in the Iranian Revolution and a buyer’s panic traumatised the Rotterdam market for spot tanker cargoes. While the immediate cause of the oil surge was an unexpected fall in US inventories and Opec’s failure to heed Bush’s call to boost production, black gold has become a hedge against the dollar, a new global currency of wealth and power, as the exponential increase in the numbers of Russians in the Forbes Global Billionaire list suggests.