North West Oil Group, Inc. (NWOL)

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opinions on the iran crisis from around the world:


Oil crisis and Iranian offer

Sun, 23 Apr 2006, 10:18:00

THE tension over the ill prospect of a US strike on Iran centering on that country's acquiring of nuclear capability is rising to a new height. The possibility of such a strike deepened with President Bush underlining the point recently that he would not rule out military option against Iran and, more significantly, the use of nuclear weapons against Iran. The menacing words of the US President and other recent signs of the warlike posture of the US administration are only adding fuel to international tensions about the imminent break-out of hostilities over Iran. Many chilling scenarios are being conjured up including the blockading of the vital sea lines by the Iranians in retaliation through which passes most of the oil of the Middle Eastern region to users all over the world. The US has its strategic reserves of fuel oil to take care of its requirements for a period; it is also a producer of oil in its territory though it conserves the same for strategic reasons. But Western European countries produce little oil and Japan none at all. China is also critically dependent on Middle Eastern oil.

Thus, large scale military activities in the Middle East and breakdown of the world's oil supply system as a result is already creating jitters and tending to raise the oil price to a new high. Oil price neared 75 dollars a barrel two days ago but declined somewhat since then. But the speculation is intense that oil price could leap up to 100 dollars a barrel in no time.

Meanwhile, the Iranian President Ahmedinejad has proposed a beneficial formula for the developing countries or the poor countries. He has proposed selling of Iran's oil at specially reduced prices to the poor countries to enable them to withstand the shock of rising prices of fuel oil in international markets. We welcome this proposal but it has to be seen how far Iran can make OPEC, the international monopoly of oil producing countries that control distribution and sale of oil worldwide, agree to its proposals. Poor and developing countries should immediately congratulate Iran for its offer and start lobbying OPEC as well to make oil available at special discount prices for them a reality at the soonest. Bangladesh should also join in this bid by playing its part very actively in any forum of poor and developing countries wanting oil at concession prices in line with the Iranian proposal.

Meanwhile, the West Europeans, Japan and China should join hands in exerting pressure on the US administration not to go for a reckless move against Iran. They should realise that their vital interests are involved in not disrupting the oil supply from the Middle East because unlike the US they do not have a strategic oil reserve or local production capacity of oil of any significance. Thus, their economies would be more vulnerable to any shake-up in the oil markets due to start of a war in the Middle East.

http://www.nation.ittefaq.com/artman/publish/article_27343.shtml