Oil vs War
An In teresting Aritcle regarding Oil vs War
Compliments of the Daily Roconking....
Gulf War II and the Coming Oil Crisis
Dear Daily Reckoning Reader,
Saddam Hussein is going down. George W. Bush has already
announced his intention. For many the question is not "if," ...
but "when." Even the most sensible voice in the cabinet,
Secretary of State Colin Powell, has made it clear that Iraq is
the next U.S. target.
Why?
As a Daily Reckoning reader put it this week on the discussion
board: "Iraq: It's so obvious."
With 112 billion barrels of oil, at least according to Oil and
Gas Journal, Iraq has the second-largest oil reserves in the
world. And although you may not be aware of it... 90% of Iraq's
oil exports -- 24.2 million barrels a month -- already go to the
United States. Only the "invasion strategy" appears to remain in
question.
Now, here's a fact that should be fairly obvious to all
readers...
Arab Wars = Oil Profits
It's simple. Conflict in the Middle East invariably leads to
higher oil prices. Consider recent history:
* The Yom Kippur War, 1972 -- fought between Israel and its Arab
neighbors, it quadrupled the price of oil, from $3 to $12 a
barrel.
* The Iranian Revolution, 1978 -- effectively removed one of the
world's kingpin oil producers and pushed oil prices from $12 a
barrel to $24 a barrel.
* The Iran/Iraq War, 1980 -- jump-started oil prices again,
sending them from under $22 a barrel to over $35!
* Iraq invades Kuwait, 1990 -- propelled oil markets into the
stratosphere. The price of crude climbed from $20 a barrel to
over $35 a barrel.
In each case, investors who caught the move early made fortunes.
So the question seems to me to be: What are you going to do about
it?
The obvious of course is..........
AI
