The Militarisation Of Oil

International Perspective, by Marshall Auerback

www.prudentbear.com

Oil prices spiked to record levels last week, propelled by a rally in petrol prices and a cold snap in the northern hemisphere, against the backdrop of a tight balance between supply and demand. Yes, that’s right, basic “supply/demand”, not “political turbulence in the Middle East”.
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Oil, and the corresponding drive for energy security, therefore, is becoming an increasingly common, yet disruptive, thread driving policy in Washington, Beijing and Tokyo. The competition over energy resources is now becoming an additional area of contention over and above existing trade disputes between Washington and Beijing. China’s growing presence on the international energy stage could ultimately bring it into confrontation with the world’s largest energy consumer, the United States, where a growing number of American soldiers and sailors are being committed to the protection of overseas oil fields, pipeline, refineries, and tanker routes