James McKee

The US Grows Desperate For Oil



Posted: Sunday, March 06, 2011

by James McKee
http://www.forex.tradingcharts.com

The United States is fast approaching the need to open up its oil reserves as the price for oil skyrockets.  Such a need has not been seen in several years and US officials are hesitant to open up oil reserves in light of the possible complications.  There are officials in the US on both sides of the issue because of the fact that Libya is only a small part of the problem.  The oil industry has been experiencing turmoil for weeks now; this has caused a surge in oil prices.  The USD faces much turbulence ahead if the cost of oil continues to rise.

The catastrophic developments in the Middle East are only the tip of the iceberg if any more regimes are toppled.  Already Saudi Arabia has begun instituting massive welfare programs in the country to curb any uprising that might occur.  This effort could be seen as a stopgap measure, however once the danger passes many believe that it will be business as usual in Saudi Arabia.  Saudi Arabia is one of the world’s largest oil producers alongside Kuwait and the two countries also have large poverty stricken populations.

The poor of oil rich nations like Saudi Arabia and Kuwait wish to see the money gathered by their leaders dispersed more evenly among the people.  There is no honor in making people starve to death while trillions of dollars in oil are flying through the bank accounts of the elite in these countries, this realization is what sparked the riots in Libya and Egypt.  The people are no longer willing to accept table scraps while the rich do as they please.  This situation has resulted in a very malcontent populace overall and a growing desire to put in a regime that will properly disperse the country’s resources.  The Forex market could suffer massive fluctuations where the USD and EUR are concerned if Saudi Arabia experiences similar uprisings to those seen in Lybia.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
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