Oil – paying the political price

Consumers are worried about how they will afford the growing costs of petrol.

Economists are worried about the effect of the high oil price on the national and global economy.

Well here is another oil-related issue to worry about: the effect of the high price on international politics.

Oil may have fallen somewhat from this week’s high of almost $140 a barrel, but the price remains near record levels.

And in such a tight market the balance of global power between oil exporting and oil importing countries begins to shift significantly.

There are myriad political implications of this situation, but two particular risks stand out.