Oil Price: The major fear for 2011

Many people in USA and in other parts of the world thought that in 2011, they would really come out of the shadow of the economic recession that plagued the whole world from mid-2008 to the end of 2009. Well, rising oil price is becoming a major threat to the fulfillment of the dream. Oil price is now hovering around $100 a barrel and there is every indication that it will only increase in the next few months.

It is not only the people in USA who are worried about this problem but people around the world are concerned because most countries on earth import oil not export. 

China and Russia New World Order: Cash and Energy

This news did not exactly shock me, but it reminded me of the new world order that is gradually emerging in international economy. For many decades, there was bitter relationship between China and Soviet Union or Russia. The two countries were both communist and they had bitter feud over who will be the leader in communist world. As a result, China entered into a good friendship with USA and in the end, there was a continuous sense of mistrust between the two neighbors Russia and China. Now, economics is more important than politics in our world today and that is why, Russia and China could enter into a $25 billion energy deal recently which would ensure a lot of cash for Russia and continuous fuel supply for China. Under the deal, China will give some money to Russia and in return, Russia will supply certain amount of oil every year for the next 20 years to China.

This is a very good deal for both the countries as they need cash and energy security. What is your idea about it? Will it be profitable for both the countries? Do you think that India should enter into this kind of deal with Russia and some other countries in Central Asia?

Oil Price Hike: What Next?

A few months ago, when oil price touched $100 a barrel many people got shocked. $100 was like a disaster zone or danger zone. Now, it touched $124 and in fact, new records are being made on oil price almost on a daily basis. Who does not need fuel? You can be rich or poor but you need oil.

AP wrote:

Oil prices slipped Thursday after jumping to a record near $124 a barrel in the previous session as investors captivated by the market's upward momentum seemed to ignore figures showing an increase in U.S. crude and gasoline supplies.

Analysts had no clear answer for what prompted the continuation of the surge that pushed prices past US$120 for the first time earlier this week.

So, what is next for oil price? $150, $200 or $500? I guess that no one will get shocked whatever the price comes. Well, I really wish that all the countries in the world really start to invest on alternative energy sources. Otherwise, the future will be bleak for world economy and you don’t have to be an expert to understand the danger.