Why does turmoil in Libya, producer of 2% of the world's oil, cause such a sharp increase in the price of oil?

11 Responses to “Why does turmoil in Libya, producer of 2% of the world's oil, cause such a sharp increase in the price of oil?”

  1. Denise Says:

    Partially because of panic
    Partially because any excuse to raise prices will do.
    Partially due to dollar weakness.
    Partially due to worldwide demand for oil increasing coupled with the prospect of 2% of the supply potentially coming off-line.

    I would guess a combination of all of the above.

  2. Think Outside the Ballot Box Says:

    Price fixing and speculation fears of other countries in the region collapsing, including Saudi Arabia.

  3. Queen Of Spades--> Says:

    Its just another excuse to raise prices.

  4. Francie S Says:

    All that is just an excuse used by the oil companies to gouge us for even higher profits.

  5. Primoâ„¢ Says:

    Must be Bush’s fault

  6. Mike Says:

    The number one OPEC producer is Saudi Arabia and that country is also a monarchy. The commodities market is concerned about a domino effect.

  7. big chief Says:

    Because it’s like a stack of dominos…Egypt went, now Libya, and the rest of the Mid East is soon to follow. Oil is going to go through the roof

  8. Edmon Reuger Says:

    Liberal oil futures traders drive up the price.

  9. Richard Cabeza Says:

    oh just wait, the Obamination administration will see to it that gas prices will climb even higher in an effort to disincentivize buying gasoline

  10. ...(OPE)... Says:

    Jesus was Jewish. What are most Jewish people considered? I’m asking for real, because I don’t know the answer.

    As for oil, I think the sharp increase is due to the overall atmosphere in the Middle East. Although, even at only 2%, disruption in Libya’s oil would effect the market.

  11. uwillnomyname Says:

    Panic and human nature.

    Wonderful world, isn’t it?

    *blatant sarcasm*