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 The crude oil price is once again on the rise. The oil price constantly went up through the past 2 years and some fear that the new North African and Middle East situation could stimulate a substantial growth of oil rates.
In the last decade the oil had a historical record of US$147.27 per barrel in 2008 during the Iranian missiles crisis. Apparently, the Middle East situation whether is stable or not, it has a great influence over the oil price.
Since the early months of 2009 the oil price started a rather constant growing trend that still continues a couple of years later. The political unrest that goes for two weeks in Egypt had so far a small impact over the oil price. Before the crisis the crude oil was above $90 for a barrel and now just passed over $100. Some economists say that if the situation in Egypt will continue the oil transportation through the Suez Canal will be at risk. If the Suez Canal will be closed the oil transportation will cost more and will take longer. This will result in higher gas and food prices in North American and Most European countries. On the other side Egypt is not actually one of the major oil exporters so the political unrest in the country has little impact over the global market. As long as the political unrest is not extending in the Middle East the oil price should not be influenced. Before Egypt Tunisia, Algeria, Yemen and Lebanon had large scale anti governmental protests. Other countries in the region such as Jordan, Mauritania, Oman, Libya, Saudi Arabia, Sudan, and Syria could follow this wave of freedom. If that really happens, the regional crisis will certainly have an impact over the oil price. |
