JERUSALEM — The rapid rise in oil prices has undercut the U.S.-led war
against Al Qaida and aligned groups, according to a new report.
The report also blames sabaotge by terrorist groups for spikes in oil prices, and reviews the impact of China on the Mideast strategic equation.
The Institute for Contemporary Affairs said shrinking oil production
capacity fueled by strong demand has benefited Islamic insurgency groups.
The institute said in a report that these groups determined that targeting
oil facilities would be the best way to hurt the Western economy.
"Since the end of the major hostilities in Iraq, there have been close
to 300 attacks on pipelines, refineries, and other facilities, and there
have been attacks on oil installations in many other parts of the world,
including Chechnya, Pakistan, India, Russia, Azerbaijan, and Nigeria," the
report, entitled "The World Oil Crisis: Implications for Global Security and
the Middle East," said.
Authored by Gal Luft, the report said the attacks resulted in the
removal of about 1 million barrels of oil per day from the world market. The
report asserted that the price of oil would have dropped by at least $20 a
barrel had the energy supply been restored to the market.
"The terrorists believe that the best way to hurt the global Western
economy is to go after its oil, to blow up pipelines, refineries, pumping
stations, tankers, and take them off the market," the report said. "They
realize that when they blow up a pipeline in Iraq or in Sudan or anywhere in
the world, this translates immediately into a price rise in all the
markets."
The report cited China as changing the strategic equation in the Middle
East both through its increased oil consumption and its support for radical states such as Iran.
Luft said China would oppose any United Nations Security Council
effort against Iran's nuclear weapons program in wake of a $70 billion
energy deal between Beijing and Teheran.
