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Gaining another 2.9% today, oil is back near its pre-quake highs of early March. Steve Levine...

Gaining another 2.9% today, oil is back near its pre-quake highs of early March. Steve Levine reports that Yemen, a minor producer of crude, may still influence the price because its porous northern border with Saudi Arabia could allow a flood of (armed) refugees into the Kingdom.
Comments (1)
  • katiehatch
    , contributor
    Comments (3) | Send Message
     
    The entire region is highly interconnected and should be watched closely. The strategy of most investors looking at $OIL is a tunnel vision focus on individual countries only when the pot boils over, and to access their contribution to the global $OIL market. This approach is dangerously short sighted and displays naiveté with regards to the highly interconnected logistical structure of the Middle East Oil Supply Chain. By simply looking at a map of the region one can see that the shipping channels are all adjacent to countries which are or have suffered unrest during this "Middle East Spring".:
    Yemen on the Red Sea
    Saudi Arabia Red Sea
    Bahrain very close to the Eastern Province of Saudi Arabia which is the Oil Capital of the Nation.
    Lybia along the Mediterranean
    Egypt in control of the Suez Canal

     

    please see my blog point with more on this topic katie-hatch.blogspot.c...
    23 Mar 2011, 10:58 PM Reply Like
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