South Africa's JSE is down 3.11%, India's SE at 52 week low

One of the reasons why we've been harping about oil prices, is because without cheap energy, markets can no longer function effficently (or even profitably). In simple, easy to understand English, that means high energy prices will erode the value of stock exchanges and decimmate economies that require fossil fuels to function. And of course, the world's commerce and capitalism has oil in its veins. The speed at which this breakdown happens will also be efficient, in the reverse direction of all our fossil-fuel based 'efficiencies'.

"Given the vital importance of petroleum to modern life, the global nature of the oil markets and the far ranging social, political and economic impacts of high prices and market volatility, we all have a stake in this conversation," Ali bin Ibrahim Al-Naimi, the Saudi petroleum minister, said. "The current market conditions are in the interest of neither the producers nor the consumers, and none of us can be content with the status quo," he added.

clipped from inhome.rediff.com The real reason why stock markets are crashing In a way it captures the irony of our times. Isn't it a bit strange that Saudi Arabia, the perceived beneficiary of the relentless oil price hike, should host a summit expressing 'concern' on the rising oil prices?