Will Events In The Middle East Spark A Renewable Energy Revolution?

One area of the financial markets most impacted by recent events in the Middle East and North Africa is the price of crude oil.  Since the majority of global crude reserves are concentrated in this part of the world, political unrest or disruption to production can often send prices soaring.

While the unrest was originally isolated to Tunisia and then Egypt (two countries with limited oil reserves), the resulting domino effect has inspired public uprisings in many other countries in the region, including Libya, which sits on the largest oil reserves in Africa.  As the citizens of these nations continue to take to the streets and topple the autocratic governments once in control, investors are bracing for a period of widespread political turmoil not seen for decades in this part of the world.


Brent crude oil now trades at approximately $114 per barrel, a rise of over 20% since the beginning of the year.  Some oil analysts speculate that crude oil could reach as high as $220 per barrel if conditions in Libya and Algeria continue to deteriorate.  If unrest spreads to Saudi Arabia, the largest oil producer in the world, prices could spike even higher.

If political instability continues in the Middle East and North Africa, higher oil prices will likely be with us for the foreseeable future.  And perhaps these higher oil prices is just what our elected leaders need to move conservation and the reforming of national energy policies in our respective countries back to the top of the agenda.


Source: www.justmeans.com