The Importance of Oil
One of the key factors of the world development in the last century is oil. Oil has been becoming the main source of world’s energy. It helps to generate electricity and run almost all transportation vehicles. Oil becomes an important resource and the one who control the oil commodities seem to have a huge bargain power.
Huge power of oil is proofed with its impact to the world economic growth. It is still close to our mind how the high oil price in the 1970’s triggered an economic recession. Oil factor become more vulnerable since the Middle East and Northern Africa, the region with huge oil resource is relatively unstable. There are many conflicts often appeared in this region. Every time there were any conflict, it affected to the decline of oil supplies and pull the price rising.
The latest oil issues appeared in the beginning of year 2009. The winter season is the peak demand of energy like oil and natural gas. Huge demand made the oil price is increasing. It become worst after OPEC lowered their oil supply in hope to gain higher price after the decline of oil price in mid 2008. Those factors make oil price rises significantly in the New Year. It is a bad precedent for economic growth in this year after the big financial disaster last year
