The Oil Crisis Price Spike Is Just Getting Started
Dr. Kent Moors
Market Oracle
Jun 19, 2014
First there was the crisis in Ukraine. Then, seemingly out of nowhere, Iraq exploded into chaos again.
Both testify to one simple truth about today’s energy sector: Geopolitical factors are the quintessential wild cards when it comes to estimating energy prices.
As for crude, prices have been subdued both yesterday and this morning following a crisis-related spike. But with two full-blown crises now looming, you can bet that’s not going to last.
Oil prices are now likely headed higher.
In this case, supply and demand only works in the textbooks. These days, geopolitical events can quickly outdistance the “market-only” factors.
That’s especially true in Iraq, where insurgents of the Islamic State of Iraq and the Levant (ISIL) are still on the move…
The Dangerous “Balance” in Iraq
Of the two crises, this is the one that concerns Americans the most. It may be only 275, but U.S. troops are moving back to Iraq.
On top of that, Washington is going to start consultations with Tehran. The entire region – from Riyadh in Saudi Arabia, through Amman in Jordan, to Ankara in Turkey – is in turmoil following the Sunni insurgency.
The Rest…HERE
