Forex Response To Oil And Gas Disputes In The South China Sea

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Forex Response To Oil And Gas Disputes In The South China Sea

Some still contend that the Vietnam War was all about oil in the South China Sea. Today there are new oil and gas finds in the Spratly Islands in the South China Sea and perhaps a threat of armed conflict. Our concern is the Forex response to oil and gas disputes in the South China Sea. Although the United States is no longer engaged in a ground war in Indochina its navy patrols the South China Sea. Toward the south of this region lie over seven hundred and fifty islands, cays, atolls, in islets called the Spratly Islands. This has long been a productive fishery with its many reefs. In the modern era the area promises to become important for extensive oil and gas deposits. The Spratly Islands lie off the West coasts of Malaysia, Brunei and the Philippines and the East Coast of Southern Vietnam. Mainland China and Taiwan are two and three times the distance from the islands. Our concern about a Forex response to oil and gas disputes in the South China Sea is similar to our concern about the Forex response to Persian Gulf Tension. It has to do with the militarization of this cluster of islands.

Just Who Owns the Spratly Islands?

Disputes over sovereignty in the Spratly islands go back years to when the French governed Indochina as a colony and pre-communist China under Chang Kai Shek argued over a French presence in the islands. Today Taiwan and mainland China each claim all of the South China Sea. Malaysia, Brunei, Vietnam and the Philippines claim parts of the islands. Mainland China, Taiwan, Vietnam, and the Philippines all have small troop garrisons in the islands. Brunei does not have troops to back up its claim. Tensions have recently risen as a Philippine company has found a new and large gas deposit. The Philippines already take natural gas from the area and pipe it to the island of Luzon. The Forex response to oil and gas disputes in the South China Sea could manifest themselves in a number of ways, both in direction and foreign currency trading volume.

Forex Response to Oil and Gas Disputes in the South China Sea

How Forex markets respond to disputes in the region will largely depend upon just how hot the situation gets. Last year a Chinese military vessel attempted to ram a Philippine oil exploration vessel. The US military has increased its presence in the area. In fact, the Philippines and other nations have sought closer ties with the USA in response to the perceived threat from China. Who gets to use the estimated twenty trillion cubic feet of natural gas just discovered could make a difference as well. When China’s industrial machine recovers from the recession and starts building again the rights to the energy wealth of the South China Sea could support their economy and the Yuan.

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Forex Response To Oil And Gas Disputes In The South China Sea

  1. 1. Forex Response to Oil and GasDisputes in the South China Sea
  2. 2. To see a complete version of thispresentation and to obtain our free EBookfollow this link:http://portal.sliderocket.com/BLOUC/Forex-Response-To-Oil-And-Gas-DisputesRead the Forex Conspiracy Report forinsights into trading foreign currencies.Get your copy athttp://portal.sliderocket.com/BLOUC/Forex-Response-To-Oil-And-Gas-Disputes
  3. 3. Some still contend that the Vietnam Warwas all about oil in the South China Sea.Today there are new oil and gas finds inthe Spratly Islands in the South China Seaand perhaps a threat of armed conflict. www.TheForexNittyGritty.com
  4. 4. Our concern is the Forex response to oiland gas disputes in the South ChinaSea.Although the United States is no longerengaged in a ground war in Indochinaits navy patrols the South China Sea. www.TheForexNittyGritty.com
  5. 5. Toward the south of this region lieover seven hundred and fifty islands,cays, atolls, in islets called the SpratlyIslands. www.TheForexNittyGritty.com
  6. 6. This has long been a productive fisherywith its many reefs. In the modern erathe area promises to become importantfor extensive oil and gas deposits. www.TheForexNittyGritty.com
  7. 7. The Spratly Islands lie off the Westcoasts of Malaysia, Brunei and thePhilippines and the East Coast ofSouthern Vietnam. www.TheForexNittyGritty.com
  8. 8. It is also close to Singapore.Mainland China and Taiwan are twoand three times the distance fromthe islands. www.TheForexNittyGritty.com
  9. 9. Our concern about a Forex responseto oil and gas disputes in the SouthChina Sea is similar to our concernabout the Forex response to PersianGulf Tension.It has to do with the militarization ofthis cluster of islands www.TheForexNittyGritty.com
  10. 10. Just Who Owns the Spratly Islands? www.TheForexNittyGritty.com
  11. 11. Disputes over sovereignty in the Spratlyislands go back years to when theFrench governed Indochina as a colonyand pre-communist China under ChangKai Shek argued over a French presencein the islands. www.TheForexNittyGritty.com
  12. 12. Today Taiwan and mainland Chinaeach claim all of the South China Sea.Malaysia, Brunei, Vietnam and thePhilippines claim parts of the islands. www.TheForexNittyGritty.com
  13. 13. Mainland China, Taiwan, Vietnam,and the Philippines all have smalltroop garrisons in the islands.Brunei does not have troops to backup its claim. www.TheForexNittyGritty.com
  14. 14. Tensions have recently risen as aPhilippine company has found a newand large gas deposit.The Philippines already take natural gasfrom the area and pipe it to the islandof Luzon. www.TheForexNittyGritty.com
  15. 15. The Forex response to oil and gasdisputes in the South China Sea couldmanifest themselves in a number ofways, both in direction and foreigncurrency trading volume. www.TheForexNittyGritty.com
  16. 16. Forex Response to Oil and GasDisputes in the South China Sea www.TheForexNittyGritty.com
  17. 17. How Forex markets respond to disputesin the region will largely depend uponjust how hot the situation gets.Last year a Chinese military vesselattempted to ram a Philippine oilexploration vessel. www.TheForexNittyGritty.com
  18. 18. The US military has increased itspresence in the area.In fact, the Philippines and othernations have sought closer ties with theUSA in response to the perceived threatfrom China. www.TheForexNittyGritty.com
  19. 19. Who gets to use the estimated twentytrillion cubic feet of natural gas justdiscovered could make a difference aswell. www.TheForexNittyGritty.com
  20. 20. When China’s industrial machinerecovers from the recession and startsbuilding again the rights to the energywealth of the South China Sea couldsupport their economy and the Yuan. www.TheForexNittyGritty.com
  21. 21. On the other hand, overt militaryconflict, especially involving the USAand China could wreak havoc on theYuan and US dollar. www.TheForexNittyGritty.com
  22. 22. Some analysts expect the rhetoric to cooldown once the Chinese leadershipchanges this year and lower levelfunctionaries no longer feel the need toposture and appear decisive or strong. www.TheForexNittyGritty.com
  23. 23. Then concern about a Forex responseto oil and gas disputes in the SouthChina Sea might diminish as well.Then traders can go back to concernsabout such things as the China currentaccount surplus or deficit and not theactions of the People’s LiberationArmy. www.TheForexNittyGritty.com
  24. 24. For more insights and usefulinformation regarding the Forexmarkets and foreign currency trading,visit
  25. 25. www.TheForexNittyGritty.com

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