European Banks sold Gold @ $500/ And Now, are Paupers, Debt ridden. Now, selling Oil @$90.. ?

IEA’s Knee Jerk reaction is sign of OIL Explosion, soon

                                                                       The International Energy Agency ( IEA) buzzed to Sell the Contingent Oil Stocks to augment the Shortfall, due to Libiyan short supply of over 140M bbls. It’s a acceptance of the Fact that Oil market was having shortages. The fact stated by Dr Bernanke time and again. While, the Most looked it as a Speculative Spurt. The spokesperson also admitted that shortages were occurring for last 4 months.

But, the question about Oil Prices is more about availability, and rising demand.

Lets Look at relative Oil Prices to Gold Price and Prices of other commodities both hard and Soft, the possible data suggests that the Crude should be around $100 per bbl. Silver and Copper are most essential requirements for Oil Refining have risen multi fold.

If we calculate the accepted average Inflation rate of 3% p.a., oil should be around the $100+ Level.

The last years’ BP incident has added the Insurance factor in Multifold, adding to the cost.

The Cost of exploration and rigging have risen. Many companies like Anadarko and Chevron have backed out of Alaskan Project citing the same.

Crude Oil availability in deeper off shore waters pressing for more impurities and Increasing the Replacement costs.

The 28 countries In I.E.A. have taken this Knee Jerk action to augment the shortfall, but how long this back up will Last, is now a worry.

Moreover, in the initial run when gold was trading at $500 an Ounce, E.C.B and Many European Banks including Portugal, Spain ,Sold Gold And now, the same many countries are the Debt-ridden and have no place to run, while Gold is at $1550 an Ounce.

Is Crude Oil following the same Trajectory ?