oil crisis around the corner?

  1. 9,081 Posts.
    The recent terrorist threat to Japan sent oil prices temporarily down due to fears that a terrorist attack on Japan would affect that country's oil imports.

    That fear now seems misplaced (at least in the short term)

    What is more telling is the fact that both the US and China are continuing to build their Strategic Petroleum Reserves (SPR) --- why, one might ask? what fear lurks around the corner?

    Note the following extract from one US oil commentator yesterday:

    " ..... Demand for oil is on the rise world wide. Competition for oil supplies will get even more competitive. For our (USA) national security not only do we have to fill it (Strategic Petroleum Reserve), we must do it quickly. We should expand it because our projected future demand for oil is on the rise and rogue oil nations might try to hold us hostage by withholding oil. Not to mention of course that we are currently in a war with terrorists who have already demonstrated that they will do anything they can do to destroy our economy. Al Qaeda has already made their intentions known that they desire to control the world's oil and possibly threaten the world's oil installations. We believe we will find $34.00 per barrel oil was cheap insurance and a small price to pay for our nation's security. " (Source: Alaron Energy Report, 3/2/04)

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