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Oil price and Middle east and african crisis

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  • 21-02-2011 9:32pm
    #1
    Happycamper79
    Closed Accounts Posts: 3 ✭


    I see that the price of oil has hit 105 DPB on the back of speculators trying to take advantage of a possible decrease in oil supply from the middle east and africa. I'd like to follow this along....

    Lets say that, like egypt, many other countries that do not have an elected government decide to over throw their governments and demand demoracy, equality, social services etc. e.g. Lybia, Bahrain, Iran, syria, Saudi, yemen, etc. Lets hypothesise that these countries elect a governement for the people (Yes, i know i'm in LaLa land) and these governments start channelling the wealth of their national oil reserves into building up real infrastructure and real economies and real social services etc.

    If you were sitting on reserves that everyone wnats, and you could happily sit on them untill people were paying an acceptable price...

    What will happen to the price of oil?

    I don't think it will go down..... coupled with other economic growth, deminishing reserves etc.... Could we see 300 dpb by 2020? or will this price just anhilate oil dependant economies and the price will slump like 2009 all over again.


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    #2
    djpbarry
    Registered Users Posts: 13,104 ✭✭✭✭djpbarry


    Moved from S&EI.


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    #3
    andrew
    Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 3,368 Mod ✭✭✭✭andrew


    If you were sitting on reserves that everyone wnats, and you could happily sit on them untill people were paying an acceptable price...

    What will happen to the price of oil?

    Isn't that currently the case though?


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    #4
    [Jackass]
    Closed Accounts Posts: 9,193 ✭✭✭[Jackass]


    Question:

    Lybia controls roughly 2% of the worlds oil reserves. Since the political crisis in Lybia, oil prices have shot up circa 33%.

    Why?

    Is this a false Economy and the oil price "myth" where extorsion is sought at every oppertunity? And then the prices are passed on to the consumer blaiming "higher oil prices" when in reality there is a cash in all the way down the line to the consumer.


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