READING: GlobalResearch’s ‘Why The Huge Spike in Oil Prices? “Peak Oil” or Wall Street Speculation? ‘
While President Obama is busy setting tougher sanctions on Iran for questionable allegations that Iran is seeking the bomb, gas prices are on the rise. In the Los Angeles area alone, prices have hit $5 for premium gasoline, which analysts claim the summer will see even higher prices. The origin of this rise in price is seen as two fronts: Wall Street speculation and the aforementioned sanctions. Unless government enforces already set laws that regulate out of control speculation, or curtails its drive for Middle East war, gas prices will not fall. Fragile economies be warned.
Since around October last year, the price of crude oil on world futures markets has exploded. Different people have different explanations. The most common one is the belief in financial markets that a war between either Israel and Iran or the USA and Iran or all three is imminent. Another camp argues that the price is rising unavoidably because the world has passed what they call “Peak Oil”—the point on an imaginary Gaussian Bell Curve (see graph above) at which half of all world known oil reserves have been depleted and the remaining oil will decline in quantity at an accelerating pace with rising price.
Read the rest of the article at Global Research.