HIGH ON OIL

They have world by the balls.

They know, not only USA, but world is addicted to oil and they are also aware of the fact that demand and supply are looking in opposite directions. Saddled with this information, they are ready to take the world for a ride.

Oil producers now know, they can throttle supplies, without denting their revenues. Also, they know they may last longer and happier this way rather than flooding markets with their dwindling supplies. Let it trickle, it will get dearer.

Two cats fight over a piece of bread, monkey pitches in to resolve. Cats run away with monkey's bread too and divide it equally. Latest Chavez-Exxom act has added 10% to oil prices within a few days.

The fundamentals remain unchanged. Pressure on commodities will remain high, unless popular governments show willingness to shift their fast lane economies to lower gears and run into danger of falling into deep depressions.

Thanks Mr. Chavez, for reminding the world that it needs to be more innovative and get out of the orthodoxity of late nineties.