Banking service chronicle Monthly Magazine by bsc academy-subscribe published this is article page no 57 oil has been rising for the past 10 years as the world has come to the understanding that there is only a limited supply and national economies are tied to it. to many people the rise in oil price is a good bet because of its limited nature. it may be possible that oil will take a dive in price as it comes close to $100 per barrel as people begin to feel uneasy. it is possible that people have made so much money on oil stock futures options and other investments that people or large investment houses may dump their investments and take the winnings. if this happens even a small decline could trigger and en masse exodus from the market forcing a quick downward trend on the price per barrel of oil causing the market to crash. a market crash could be as much as a 40% decline in the price per barrel. there are a number of forces around the world that may make a dip in the market in the near future. the middle east may become more stable in the near future as the ending to the iraq war becomes more likely. even though there is no guarantee that the country will become stable it is a possibility it may become this way as one side beats out the other. it isnt likely to have an immediate affect. since companies have found the oil market to be so lucrative they have been scouring the world over for new deposits. in their interest they have been able to find these new deposits and in a couple of years will be able to tap them which will put more money into the market. when this oil goes into the market the demand will decrease because world wide production has increased. since oil prices have been on the rise over the past decade countries have been investing in alternative fuel sources. for example in the united states ethanol plants have been springing up all over the pace cars are expected to increase efficiency and he government is trying to cut dependency on foreign oil banking service chronicle monthly magazine.
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