How will life be with oil at $200

As the price of oil exceeds $135 a barrel, Goldman Sachs, the New York investment bank, predicts that the oil price will reach $200 a barrel in the next year.

Mamdouh Salameh, advisor to the World Bank and UN Industrial Development Organization, said that if not for the Iraq War, the oil price would be $40 a barrel today. It is the United States' and Britain's invasion that led to the current oil crisis.

Iraq apart, although speculation must play a part, there are two fundamental reasons why the world is in a severe oil crisis.