For all the hot air relayed on U.S. foreign policy last night, neither candidate spent much time talking about what’s actually worrying the Middle East. ‘Oil’ is the quick answer: OPEC faces a triple dilemma over the short, medium and long term, none of which have good outcomes for the cartel.
The short term is simple; prices are likely to correct into 2013 below price bands that are deemed economically and politically comfortable. That strikes on OPEC’s medium term problem; the geological cost of production is now structurally out of sync with the geopolitical cost of survival..............................................Full Article: Source
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