Prepare for the big disaster ???

4

June 28, 2008 by Tara

I read oil price has touch a new record again, $ 141. I think, this is not the last record. We just wait for the new record again, again and again. And, I think it will lead to a BIG DISASTER on the world. But I don’t know, what kind of disaster it will be.

I have read a lot of explanation about oil price hike. Below is the most rationale explanation I can accept :

– There is no high jump on oil consumption. Yes, consumption is growth. But consumption growth still on a normal curve, while price hike is exponential.

– There is no reduce on production rate. There is a threat on security by Israel-Iran (Iran nuclear case), there is a threat on Niger (or other country in Africa? CMIIW) oil production by a rebel. But the point is, we have through years on oil issue (Iraq war, Venezuela, etc), and so far, there is only a bit oil price movement (compare with current volatile price).

Then, there is no unbalanced oil consumption-production!

Then, why oil price continue to hike?

I believe, this is a consequence of our economic system. Previously we have see financial disaster on subprime mortgage. It lead to a fall of prestigious financial company. Billion (or trillion?) dollar has lost. After this, flow of money move from finance market to oil market. Right now, only 25% (or 20%?) is actual transaction. The rest is only paper transaction. And this is that lead to oil hike price!
Sorry that I’m not providing good data on this article. I resumed this only from pieces of information that stored in my mind, but I’m pretty sure that general explanation here is correct.
Note : this article is dedicated to Tanneke:D . I promise her, that some times I’ll write a blog in English.

 

4 thoughts on “Prepare for the big disaster ???

  1. Rindu says:

    Ngomongin oil yah … biasanya jatahnya mas Zaki untuk comment, saya mundur deh !! No comment🙂

  2. Rindu says:

    Pada kemana sih orang-orang mas …🙂

  3. Tara says:

    Kan blog ini pengunjungnya sedikit de..
    maklum, tulisannya nggak asyik untuk orang umum:D
    Budi segala pasti sedang repot

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