The price of crude oil has hit $US40 a barrel which is the highest price since October 1990 in Gulf War I.
The bad news lies in the fear that is driving the prices up.
"It is really a market driven by fear, fears of potential terrorist incidents in Saudi Arabia and Iraq, and also concerns about potential civil unrest in (major oil producers) Nigeria and Venezuela," Refco energy market analyst Marshall Steeves said. [Source: ABC News]
The way the US Administration is waging Gulf War II is actually increasing the risks of terrorism. Evidence of widespread prisoner abuse is undoubtedly swelling the ranks of those who will violently oppose the US presence in the region. And no it's not a handful of 'bad apples' - it appears US 'Defence' is rotten to the core. Certainly the Secretary of 'Defence' (surely the title is wrong - it should be 'Offence') is looking down the barrel at impeachment.
The good news is that increased oil prices may force some moderation in vehicle choices particularly in the USA which maintains a thirsty SUV fleet.
In a well researched article author Malcolm Gladwell makes the case that contrary to the common view, overweight, overlarge SUVs are less safe than many standard passenger cars.
Looks like Toyota have made the smart move with the Prius and other hybrid technology.