Why, am I not surprised. When you rely on foreign resources for oil you pay the price. Many things impact that price. Market fluctuations, weather, and supply availability at any given time. Of course the concern in this article is the cost to developed countries. What comes around, goes around and eventually this will also impact Bangladesh and other developing nations.
When do we stop relying on the Gulf Countries for Oil? When do we work on developing our own resources?
This will reduce the cost over petrol at home and have further reaching benefits for us as well. Bio Fuel is being looked at across the globe as one alternative. It need not impact food security, if the correct choices are made.
So, again I ask what is causing the delay to take action?
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Oil prices up sharply in Asia on hurricane threat .World oil prices rebounded sharply from five-month lows in Asian trade Monday on worries that Hurricane Ike will threaten production facilities in the US Gulf Coast, analysts said.
New York’s main contract, light sweet crude for delivery in October, was up 1.89 dollars to 108.12 dollars a barrel from its close in New York floor trading on Friday.
Brent North Sea crude for October surged 1.71 dollars to 105.80 dollars a barrel.
‘Oil prices are reacting to the threat of Hurricane Ike, which is heading toward the Gulf of Mexico,’ said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.
‘In the short term, hurricanes will determine the price direction of crude oil. It’s likely that the market will test new lows this month if the hurricane season does not do any damage to oil production in the Gulf of Mexico.’The hurricane slammed into Cuba on Sunday, officials said. Ike, packing 195-kilometre per hour winds, earlier left dozens of people dead in a rampage across Haiti.
The hurricane is expected to eventually churn past Florida into the Gulf of Mexico and sweep toward Louisiana and the storm-battered city of New Orleans as early as Tuesday.
Last week, Hurricane Gustav forced the closure of US oil production in the Gulf, but analysts said the storm did little long-term damage to oil rigs and production platforms there.
Oil prices, which rose to record highs above 147 dollars in July, had tumbled to five-month lows close to 104 dollars last week as the cooling global economy stoked fears of waning energy demand. After hosting the 2008 Olympic Games last month, China had cut its imports of gasoline and diesel, Shum said, adding that slowing demand in the eurozone and the rest of Asia was likely to weigh on oil prices. Shum said the market was also closely watching the results of a policy meeting on Tuesday by oil ministers of the Organisation of the Petroleum Exporting Countries in Vienna.
Some analysts are expecting the ministers to agree to trim output to help keep crude above 100 dollars a barrel. ‘I think in the end, OPEC’s actions — whether it will be at tomorrow’s meeting or in the next month or two — will be the key to determine prices for the rest of the year,’ Shum said.
