Imagine a commodity, a single thing, that can boast to change the face of entire world’s economy. Yes, it is unquestionably
the crude oil and the prices of the oil. The days are not far when this crude oil would be traded at $100 plus per barrel. During last couple of months it has shot up by $25. It is also believed that the law of demand and supply does not drive the present price rise. The traders of oil have played their role, too. In any case, when the graph of oil price has dashed so Northward in post-Iraq war, it has become fatal to the
economies of many
developing countries. Much debated sanctions by US against Iran would add fuel to the fire. It would push the prices still onward, if no amicable solution of the Iranian issue is forthcoming.
Unequivocally the oil is backbone of every economy, especially the emerging economies. The spade-like prices of oil are quite efficient in breaking the backbone of any developing country. The fast running trains of the countries like India, China and Brazil could be derailed. It could slowdown the pace of global economy, too.