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With China growing at breakneck speed, oil is going to become an even hotter commodity. I think it’s just a foregone conclusion that you should invest in solid companies having to do with the oil business.

But that’s not the reason for my post.

This is just guess work on my part, but with the tensions heightening between Iran and the sane nations of the world (and France), there’s going to be a steep increase in crude prices. But perhaps not for the reasons one would assume. (Futures markets… etc.)

Maybe because the US and her allies (and France) are perhaps preparing for future conflict now by stocking up on oil in our respective national reserves. Think about this. Iran has said that if they are attacked in any way, they will cut off oil supplies to the world and create massive havoc on the oil markets. If we stock up for such a crisis, we can even out the supply with our own reserves (plus the rest of the oil nations kicking up production which would be inevitable if Iran shuts off her supply) and we can commence to kicking some mullah ass without being held hostage to oil supplies. By the time our reserve is depleted to the point of affecting world oil supplies again because of Iran’s lack of supply, we’d have set-up our first McDonalds in Tehran.

If the US and certain allies were hoarding oil right now, it would reflect in prices as demand increases. I’m not sure how these numbers can be camouflaged on the world markets, but I’m sure the US/allies don’t want Iran seeing this happen.

I’m not a commodities expert, but this seems to be a logical move given the tensions that could arise at any moment in the Syria/Iraq/Iran shooting range.

From an investment standpoint, there’s some short term gains to be made by investing in oil firms in other countries that would benefit greatly from an increased demand due to conflict in Iran and the increase in prices as a result. Russian companies in particular. They are sightly undervalued right now because of the state/private turmoil going on there.

Anyway, just a hunch.

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