Premium On Terroism
The stock market experts coined a new word. TERRORIST PREMIUM. They say that terrorist premium on oil prices is as much as 15 dollars per barrel or about 20% of the price of Oil. More than the terrorists or terrorism, this premium is killing people silently. Terrorist threats and actions can cause temporary set back. They never succeeded so far in achieving any of their aims. The terrorist outrages in the world are drawing condemnation from all quarters even from those who sympathize with their causes. Only to grab world headlines they plan some dastardly acts. They can neither break the will of people or the governments.
Support to terrorists is on the wane and they are on the run. No nation has the courage to own up the terrorists or their causes however much fanatic its mindset is. The world is at peace as like never before with foes turning into friends i.e. USA, RUSSIA, CHINA mainly. All the powers in the world vow to fight the menace of terrorism.The oil producing nations are not threatening with disruption of supplies at all. The sea-lanes carrying oil are safe and secure.Therefore the surge in oil prices for what is called as terrorist premium is shameful exploitation and extortion by those in oil trade. We must discount the so-called premium on terror in respect of oil prices completely. If need be trading in futures in oil and commodities must be banned till so called premium turns into discount and the oil prices or commodity prices are dictated by demand and supply considerations and not based on the perceived threat perception of oil traders to oil supplies. Let us understand that there is no danger to Oil or commodity supplies at all. There is no threat from oil producing nations to stop oil exports nor any threat exists for the near future.
All the countries have powerful resources at their disposal to ward off any terrorist threat to disrupt the Oil supplies. It is a mere figment of imagination of the traders who want to benefit from the slightest tensions any where in the world. Let us not pay a hefty premium on oil and let us evolve methods and means that ensure fair prices for oil based on actual demand /supply conditions and not on terrorist threats.This surge in oil prices is terrorizing people much more than the terrorists or their threats. Once we evolve mechanisms that safeguard us against such premiums, the oil prices will automatically fall to realistic levels and give relief to the people around the world.Leaders around the world must act immediately to cool the oil markets and make them see the reason. Ban the futures trading in Oil immediately for some time
Issue joint declarations with oil producing countries that there is no threat to oil supplies.
Send the message clear and wide that the sea-lanes are well protected and the terrorists have no means to disrupt the oil supplies.
Encourage dialogue process without taking sides and help the parties to settle the disputes amicably.
Make all out efforts to discount the terrorist threat by all means
Make it clear to the traders that profiting from premiums on such perceived threats is not correct.Let the common man and nations not bleed.
general
Source: http://ezinearticles.com/
Crude oil rises in futures on increased buying - Economic Times
ABC News Crude oil rises in futures on increased buying Economic Times, India - 8 Oct, 2008, 1302 hrs IST, PTI NEW DELHI: Crude oil prices maintained its rising spree for the second day today in futures trading as traders enlarging ... Oil falls back under $90 Crude Oil Rises Amid Speculation OPEC Will Curtail Production Oil prices recover slightly after steep drop -