US role on oil prices.

Well the current crude oil prices are at burgeoning level, like never before, though it seems to stabalise a bit hovering between 137-146 $/barrel for a month now. But the drastic effect that high oil prices have left on the economies around the world has taken its toll on the common people. High prices have led to dangerous inflation leading to a slump in economies and putting them in jeopardy. Inflation has breached all time highs in many countries like India where it is inching towards 12% and Russian inflation was 11.9% in 2007. Inflation in Latin America ranged from 3.3% to the high teens in 2007. The Chinese agree to let their currency rise faster than in 2007 to combat inflation. In Singapore, the consumer price index rose by 0.6 per cent in February on rising prices of housing, clothing and food items. In Hong Kong, the composite Consumer Price Index rose at a slower annual pace of 0.8 per cent in February, compared to the 2.0 per cent increase in the prior month. Oil prices have shot up, some say because of hugh demand in emerging countries others say it is due to speculation. Well perhaps both of these.Speculation, surely taken the prices to a new high. Unlike past oil crises, where the spot price of oil (that is, today's price) rose more than forward prices, the oil price for delivery in 2012 is trading at $138 per barrel. The market is sending a clear price signal that our problem is in the future.

Another speculation is about the US’s aggression over Iran, and a possible conflict in the middle east giving the signal that prises could reach 200 $/barrel. And US has given amber signals to Isreal to start preparing for war after Iran test fired 9 long and medium range missiles. The day next to those tests see prices shooting up 6 $/barrel, which clearly shows how, if a war happens, then prices will reach the sky. Iran which is the second largest producer of oil, has clearly stated that if attacked by anyone, it will spill the oil in Strait of Hormuz from where half of the imported oil towards Asia, Africa and Australia come from. In 1973 oil crisis which began on October 17, 1973, when the members of Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab members of OPEC plus Egypt and Syria) announced, as a result of the ongoing Yom Kippur War, that they would no longer ship oil to nations that had supported Israel in its conflict with Syria and Egypt (the United States, its allies in Western Europe, and Japan). Now it will be US who will be responsible if war starts and oil price reaching unaffordable prices that economies of India, China, which already facing all time high inflation, to see a slump. Infact in India high oil prices have already showing its effects on development and growth.

US has already commited a blunder going for Iraq invasion, and Iran , it will cause hugh effect , and a lot of new emerging countries would perhaps become absolutely stagnated. The decision by president bush to start offshore drilling of oil was welcomed as it would send a signal to monopolised OPEC that more oil is coming. But that decision is overturned recently.

Although Iran president President Mahmoud Ahmadinejad has said that he would have talks to follow rather than war. Weapons of Mass Destruction was the reason for Bush’s earlier adventure into Iraq, and now Iran nuclear enrichment and possible threat to the world in long term. Well long problems are solved slowly it is and with vision and consultation but what about the short problems that the whole world is facing. If he is really desperate to launch a rocket or a fire a bullet, then why not in North-West Frontier Province (NWFP), and Waziristan,  the area near Afganistan-Pakistan border, which houses cream of Taliban. They are the guys more dangerous and definitely posing a problem and that too in short term. Regarding nuclear enrichment program which Iran states it is for peaceful energy production and US says for building nuclear weapon, US doesn’t really have that concreat evidence to say that, but surely it it can’t be ruled out that nuclear weapons are not in making.US can gather more support for pushing more economic sanction. It has got the success in diluting North Korea's nuclear enrichment or atleast Iran can be persuaded to have IAEA inspect its enrichment program. But I think if economies around the world slows down especially in Asia, which houses half of world population then 1 billion will crawl into poverty, unemployment and many other problems. It will be worse than exploding a nuclear bomb at one place.

US is itself so careless in taking care of its nuclear material that in recent news says that US is taking too long to secure the radioactive material that it could get into the hands of terrorist’s.

I support US in a lot of things but i would be really happy for world if it take caution in whatever it tries to do. So all onus on US what it will do, will it be the saviour or the destructor. The whole world depends on IT.