Revolution, geopolitics and pipelines
By F William Engdahl
After a short-term fall in price below the $50 a barrel level, oil has broken through the $60 level and is likely to go far higher. In this situation one might think the announcement of the opening of a major new oil pipeline to pump Caspian oil to world markets might dampen the relentless rise in prices.
However, even when the Organization of Petroleum Exporting Countries agreed on June 15 to raise its formal production quota by another 500,000 barrels per day (bpd), the reaction of NYMEX oil futures prices was to rise, not fall. Estimates are that world demand in the second half of 2005 will average at least 3 million barrels a day more than the first half of the year.