Monday, February 28, 2011

Oil dictates - Dictators don't

Refer to my blog "Gold Vs Crude - Final Round" of 27th Sept, 2010, as guessed, Oil prices started chasing gold.

A bad winter combined with political unrest in North Africa did the trick.

In the dark continent, countries are ruled by autocrats and dictators powered by USA and Russia. Together, these two countries have been supplying weapons to dictatorial regimes to quell any uprising. But lately, China started showing interest in resource rich Africa and ME. And even sunk it's teeth in the pie. Writing was on the wall. Rules of the game needed to be changed.

Trying to block China on human rights grounds, USA has been favouring dictators and human rights abusers in Africa and Middle-east. A democratic state like America, could no longer be shameless or irrational and sustain the duel standards. And finally let it go...

The subjects of these authoritarian states have now sniffed freedom and are fighting for it. Tunisia, Egypt and Libya through, the heat is expected to spread to neighbouring middle-east. The oil rich belt from Algeria to Iran, which is responsible for one third of the entire world oil supplies, is at flash point. Any major disruption in oil supplies is capable of doubling up the oil futures from here.

Just watch, after Libya, what next...

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