Greg Ip

Articles by The Economist’s U.S. Economics Editor

Oil markets and Arab unrest: The price of fear

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A complex chain of cause and effect links the Arab world’s turmoil to the health of the world economy

Mar 3rd 2011 | BREGA, LONDON AND WASHINGTON, DC | from the print edition

[Greg Ip and colleagues] TWO factors determine the price of a barrel of oil: the fundamental laws of supply and demand, and naked fear. Both are being tested by the violence that is tearing through Libya, the world’s 13th-largest oil exporter. The price of a barrel of Brent crude now hovers around $115. On February 24th, however, it rose to almost $120, as traders realised that they might have to do for a while without some or all of Libya’s exports: some 1.4m barrels a day (b/d), or about 2% of the world’s needs.

The entire article is linked here.

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Written by gregip

March 3, 2011 at 3:40 pm

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