Viewpoint: ‘Slow Motion’ Oil Shock

International Herald Tribune – The surge in oil prices seems to have the Middle East written all over it. Israel’s confrontation with Hezbollah in Lebanon is unnerving markets already jittery over Iraq and Iran. Africa also is thought to have a role. Declining production in Nigeria is helping to keep crude oil above $73 a barrel. All these risks may push oil well above the recent record of $78.40.

The conventional wisdom that bombs and geopolitical risks are boosting oil prices and shaking up stock and bond markets is only half right. The other catalyst is one that won’t soon go away: Asia’s economic boom.
International Herald Tribune