After an extended weekend of football matches and house parties, yours truly is back amongst the midst of writing the blog for all of my ardent readers.  The weekend saw the hapless Indian cricket team getting hammered by the Aussies which has dented their hopes of reaching the finals. Only a mathematical miracle could save the Indians from a further fall from grace down under. The Carling Cup final between the resurgent Liverpool team and an unknown Cardiff City brought about a great advert for the game as the match went the distance with the Reds emerging as the winners after a heartbreaking penalty shootout. Leaving the splendor of the matches behind, the markets have opened up with most of the questions in the oil markets.

Analysts have opined that the USA should do more to entice Saudi Arabia to increase its oil production to compensate for the lost Iranian oil. The tensions enveloping Iranian nuclear program had enhanced the oil prices to a nine month-high. However, a public statement from Saudi Arabia, the world’s top oil exporter, to pump oil at its full capacity could calm the recent volatility in the oil markets. The American government has urged its Saudi counterparts to increase production to full capacity of 12.5 million barrels per day-an increase of 2.5 million barrels. The increment would compensate for a reduction in Iran’s total exports of 2.2 million barrels per day.

The skyrocketing of the fuel prices in the recent days are directly linked to the global energy markets, particularly Iran’s recent efforts to manipulate oil prices and the worry of the impacts on supply from an escalation of regional hostilities. The UN’s nuclear watchdogs had warned the concerned authorities that Iran had stepped up its efforts to enrich uranium. But Iran had countered this statement by proclaiming that it is developing nuclear power and not weapons.

The EU will ban the import of Iranian oil as of July 1, and other buyers will face new US sanctions unless they cut back on purchases. The market shifts are now hitting global citizens at the petrol pumps, reverberating throughout the rest of the economy and threatening the recovery of globally hit nations.

The oil-rich country, Saudi Arabia, is a pivotal point in the midst of the current oil issue. The nation has kept its promise by sharply increasing its exports in the past week. But whether the increment is sustained over a longer duration of time is yet to be notified.

Note: The blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred.