The recent news of likely drastic oil production cuts, with KSA likely to cut 2mbarrel will effect the market badly. In the dwelling economic situation this is not a news that is welcomed by any corner of the world. We are still aware of the recent scare that recent surge in the oil prices did to the world economy.
The world has seen many wars over oil , from the oil crises of 70s, conflict between Iran and Iraq, Iraq Kuwait conflict that led the region into a smoldering volcano, turmoil in oil rich Nigeria making the country unstable and prone to violence thus making the world oil prices unpredictable . Till today there is no stability in the oil rich region, and now the looming clouds of war over Iran are not at all a good sign for maintaining a stable price.
Wars and conspiracies over this essential commodity(oil) that is running the modern day world can and will define future recessions or growth in the world markets. Till the time there are no vital and viable alternate energy solutions, we are all prey to oil. Our lives are linked and dependent on this vital commodity.
It is time that we all in the business and finance sector sit together and along with the OPEC countries solve the price issue in order to have a steady price hike over a period of time and thus creating more stable economies and growth rates round the world.
And please do comment on the price we have to pay for the oils, shall it be US dollars or euros.....