Political tensions and oil are still an issue. As tensions in the middle east and between Russia and the US have ratcheted up this week, so has the oil price. It hasn’t gone up as much as you would think and some of the rise maybe due to improving economic news, but it still shows for all the talk of “Saudi America” how important the middle east is to world oil and gas supplies.
As we wrote in “No oil in the lamp”;
“The Middle East holds a critical position in terms of future oil
supply simply because such a large proportion of the remaining
global reserves of oil (and gas) are there. On a list of the world’s
largest oil fields, 28 out of the top 40 are located in the region. (The
world’s largest, the Ghawar field in Saudi Arabia, was discovered in
1948, started producing in 1951, and is still pumping out around
5 million barrels per day 60 years later.) The Middle East is also,
crucially, a place of unresolved conflict over the existence of the
state of Israel, the position of the Palestinians and their competing
demands for land and sovereignty. These seemingly insurmountable
problems remain as a point of tension with the Arab world, and are
likely to continue to do so whatever political changes take place.”
It seems like gas and electricity prices already expected to rise 5-10% in the UK this Autumn since old coal fired power stations are going off line, are going to rise still further. Even if other countries will not see like us such price increases, we will all see increases in the cost of transport, food and materials. Our book has never looked more relevant.