22nd
Feb
2011

Libya Sends Oil Prices Rising

Posted by Admin

There have been recent revolutions or uprising in the following countries: Tunisia, Libya, Egypt, Bahrain, and Jordan. Naturally, all of these countries are oil-producing, middle-eastern nations who’s movements have a major effect on worldwide petroleum and oil markets. The recent upheaval in Libya has, more than any other event in this string of civil unrest, caused the prices of oil to skyrocket.

In Wall Street’s steepest selloff in three months, the blue chips plunged almost 200 points and the Nasdaq Composite shed nearly 3% on Tuesday as the snowballing violence in oil-rich Libya sent crude exploding above $93 a barrel.

…Traders fretted about the possibility Libya’s oil production could be halted by the violence there or that the unrest could spread to Saudi Arabia and other oil-producing nations.

Wall Street’s fear of rising oil prices is pretty well-documented. The prices have certainly come up–oil rising over $93 per barrel hasn’t occurred in quite a while. Expect the unrest to result in even higher prices as time goes on and summer approaches. People drive their vehicles more, for further distances, during the summer–so it is highly likely that gas prices will rise precipitously in just the next few months.