If the prise of oil raise than the most likely outcome would be leading toward war as the top oil consuming countries will not be able to meet the price to what they are demanding for. Another indication that will be given to the world if the oil price raise, is that oil is not far from running out, which will than lead on to the same action that has been happening in the past, i.e. large oil companies will by oil long.
Another possibility may be the that oil might become inelastic, due to significant raise in the oil prices, people with average income will need far more money to live a high class life style. So therefore the test and preference will slowly start to change.
If the price rise significantly then it would affect the global economy at different rates, but the leading oil consuming countries will face the largest effects. As we can see in (graph 6) global consumption of oil per capita that U.S.A and Canada consume the most gallons per day per capita.
Overall if the prices do set to increase then it would benefit the middle east more then any one as they will under power many of oil consuming countries, which may back fire by leading on to war. …
