the building of the next oil bubble..!

Oil has risen to $80 per barrel in anticipation of economic recovery in the US and Europe. There appears to be an element of speculative activity behind the recent rise. Much of the excess liquidity has been used to for speculation in the oil market. Its not a good sign for the world economy as high oil prices can derail the recovery process. It appears that there are some vested interests in middle east and Russia which are behind the recent rise in oil price. Such high oil prices provide them with windfall profit which in turn is used to inflate the oil bubble. It appears that with this pace oil may touch 200$ per barrel by 2012.

The international community should join hands together to help the world get rid of oil mafia. Moreover , a forum of oil producing countries can be created for ensuring the stability of crude prices. Such steps can help the world economy in the short run whereby poor countries are protected from recurring oil shocks. However, in long term we need to develop alternative sources of energy to avoid our reliance on oil. Solar and nuclear energy have huge potential and they can even reduce our emission of greenhouse gases and may go a long way in providing us a clean source of energy.