Monday, March 21, 2011
Text Fwd: All Out War on Libya, Surge in the Price of Crude Oil...
All Out War on Libya, Surge in the Price of Crude Oil...
"Humanitarian Wars are Good for Business".... Speculators Applaud....
by Michel Chossudovsky
March 16, 2011
The establishment of a no fly zone is on the drawing board of the Pentagon. Saudi Arabia and the Gulf states, supported by the Arab League and the Organization for African Unity (OUA) have labelled Libya as "An Unfriendly Nation".
The scenario envisaged by Washington is to involve Saudi Arabia and the Gulf states in aerial attacks directed against Libya.
They have also called on Saudi Arabia to supply opposition forces with weapons.
Reports confirm that NATO special forces and military advisers to the rebellion are on the ground in Eastern Libya.
The geopolitical and economic implications of a US-NATO led military intervention directed against Libya are far-reaching.
Libya is among the World's largest oil economies with approximately 3.5% of global oil reserves, more than twice those of the US.
A war on Libya would have an immediate impact on the price of crude oil. The latter has risen by 18 percent since the beginning of the insurrection in Libya.
It currently stands at $104.42 a barrel for April delivery on the New York Mercantile Exchange, its highest level since the financial crash of September 2008. Since August 2010, the price of crude oil has risen from 75.93 a barrel to 104.42 (March 2011), a hefty increase of 37.5 percent. (See Table below)