With oil prices touching $50, here comes another warning that they will again skyrocket to $100 a barrel by the end of this year due to the turbulent developments in the Middle East, pointing at an imminent global oil crisis, warns a British economist on Wednesday.
Simon Hunt, a British economist, says since the US continues to lose its influence in the Arab world with Russia and China making headway in the oil sector as well as the Middle East region despite sanctions put up against the former superpower, the oil crisis looms larger soon on global horizon.
“America’s willingness to rule Iraq has caused a lot of opposition (in the Middle East). It is very likely that sometime later this year we are going to see increasing political turmoil in the region that will lead to significant supply disruption (of oil),” Hunt told IANS on the sidelines of an Indian Chamber of Commerce event in Kolkata.
Russia is the world’s second largest oil exporter after Saudi Arabia. Hunt, who also provides strategic advisories to companies on the dynamics of the economy, says there is high risk in the political scenario in Saudi Arabia.
“The succession is still not clear and there will be internal conflict (in Saudi Arabia). Big trouble is going to come from Yemen,” he said.
According to Hunt, amidst this turmoil, India will again resort to a “wait and watch foreign policy” and continue to maintain its status quo nature of relations with the power blocs as well as the Middle East, perhaps going back to its Cold War policy, notwithstanding the new proximity to the US. (IANS)