Grupo de Economia da Energia

Posts Tagged ‘Libya’

The crisis in the Arab world and price of oil

In oil on 28/02/2011 at 00:30

By Helder Queiroz

The current political crisis in the Arab world is already causing upheavals in the international oil market. After the worsening crisis in Libya, an OPEC member with production around 1.5 million barrels, the international prices of crude oil have risen significantly in recent days, reaching the level of US$ 108 per barrel for Brent crude.

The degree of uncertainty in the markets and the resulting volatility of prices tend to increase in the coming days, due to unpredictability for the political and economic consequences in Libya, but especially on possible developments in other OPEC countries.

Thus, the greatest fear of the agents operating in that market is about the possibility of disruption of supply. Under these conditions of uncertainty, the oil futures market is more active, multiplying significantly the number of transactions, causing an upward trend. This aspect is not particularly recent. In mid-2008, prices reached the level of US$ 145 and dropped to almost half that value at the end of that year. Continue lendo »