By Oystein Noreng
Within the present political weather of the center East and critical Asia, with anti-Americanism and the specter of terrorism in such nations as Saudi Arabia working excessive, oil will influence the area economic system in addition to hundreds of thousands of lives sooner or later. this can be an critical booklet for somebody involved in the destiny of the realm at the present time, particularly the interaction of energy and funds within the heart East and past.
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Additional resources for Crude Power: Politics and the Oil Market
Depending on the emerging exchange rates, tlie outcome might easily be that oil prices decline in the Chinese market aild rise further in the US market. Consecluently, Chinese oil consumption would be encouraged, while US oil consumers would be discouraged. Less costly oil would relieve inflationary pressures in the Chinese economy, but in the US economy, the combination of more costly oil and more expensive Chinese imports would strengthen inflationary pressures and at least for some time increase the trade deficit.
Io2 The neoconservative political arsenal includes provocation and confrontation, aiming at subjugation, demanding unconditional loyalty from friends and allies. 1i" Regime change is a keyword for transforming the world according to US interests and ideas. 1~l"he weakening ideological cohesion and competing interests, includng over oil, are likely to sharpen economic conficts, keeping oil prices high, aided by continued turmoil in the Middle East. lo5 Such an agenda could not be openly expressed, nor could it be handled successfully through the United Nations.
It was intended to be a cornerstone in an imperial venture, but has become a stumbling block. The proactive US strategy has hardly been halted, but it has been seriously caught up by uilexpected problems in Iraq. I" The combination of Iran's and Iraq's resources, possibly joined by Syria, could make the most powerful economic and military entity in the Middle East. It would evidently have a key role in oil matters. The question is whether this would be acceptable to the United States and Israel and how they could possibly preclude such an outcome, and with lvllat risks.