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Will Commodities be the reason for the next “World War”

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When talking of the commodities we should not forget the most important Non Agri Commodity which is Crude Oil, Thermal Coal, Brent Crude Oil, Gasoline, Natural Gas, Heating Oil of which Crude Oil is the most important. It is rightly said that:

“Next world war will be for crude, energy resources”

With Globalization becoming the buzzword of the era and the economies becoming Integrated, Interdependent and Interrelated the growing demand and ending resources make energy sources preciously valuable. It is analyzed that the next world war would be for energy resources. Today where ever you see war, you’ll find crude there.

China & Russia threatening US for a Third World War

This could be another reason for the turmoil in Middle East-North America (MENA) region or the prevailing conflicts between the countries like U.S. and Iran; still the political and diplomatic drama behind these incidents seem elusive for common man’s logic.

Meanwhile China also threatened the United States of eyeing Iran’s crude and imposing sanction against oil exports from the country, as Iran is the second largest crude supplier to China. Russia has also retorted with strong words against the American intention to attack Iran. Chinese general has reportedly warned the NATO that the country will not hesitate to protect Iran even with a Third World War in order to safeguard its domestic political needs.

Energy demand from China, the world’s biggest energy consumer is estimated to surge further in the recent years alternatively hiking the Crude Oil and Coal prices. China’s total energy consumption was just half that of the U.S., 10 years ago. With the rapid development and increasing population China’s growing energy demands will present new challenges to U.S. foreign policy, as well as to international efforts to reduce emissions of greenhouse gases linked to climate change.

Read on GWI Why the Best Investment over the Next Decade is based on Malthus Scarcity Theory.

East Africa, India & Brazil

On the other hand, energy crisis is seen in East Africa for instance in Uganda, load shedding has increased by four times from 12-hours of load shedding to 48-hours of load shedding in some places. In Jamaica, rising oil prices have not only put pressure on Electricity bills, but also on the production costs of industries that rely on oil as their only source of energy. India and Brazil are the two major emerging economies with huge energy consumption, these nations’ energy demand is also assessed to hit to the roof in coming years.

It would not be wrong in saying that the life of people has changed and their needs and demands have increased manifold. Under such circumstances it is very important that the way of sustainable development should be adopted, only if we want our future generation to get all the benefits of the natural resource available in earth. In order to check the consumption of fuel and energy, a regulatory body should be set up which should be directly under the control of the highest court of the country. A check on the consumption of the energy and fuel should be imposed to control the wastage of the resources, be it by common man or any organization.


At last but not the least, it is undoubtedly true that if proper steps are not taken now, the rising prices of commodities will definitely create a tussle among the nations globally and the commodity market will be affected at large. Being simple and straight, if these emerging economies – China, India along with U.S didn’t cut their dependency on oil and Coal in the coming years, the world might have to go for war in search of energy resources. As a result of which the global world might suffer with the after-effects of the world war.

Thus it’s never too late to say “YES” to less and “MORE” to life by saving energy”


Niraj Satnalika

Niraj is an MBA in International Business (Finance). Prior to this he completed B.Tech in Electronics and Instrumentation. He is currently working with Confederation of Indian Industry (CII), Kolkata in capacity of Consultant. Satnalika is actively involved with an NGO and works towards promoting education among the underprivileged.

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