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Major Current International Intrest - Essay Example

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Soaring international oil prices due to Libya crisis After Egypt’s civil unrest that ousted Hosni Mubarak, the long term President of Egypt and ushered in the democracy within the country, Libya, a prominent oil producing nation in Middle East, also saw the start of political crisis…
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Major Current International Intrest
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Major Current International Intrest

The forty years rule of Colonel Muammar Gaddafi had been associated with Islamic socialism that thrived on state sponsored terrorism. While the protests are getting more intense, Colonel Gaddafi has wowed to suppress the political unrest by using violent military crackdown techniques. Libya is 12th largest exporter of oil and supplies around 1.53 million barrels per day (cbcnews, 2011). It has significant gas reserve and is one of the largest exporters of oil and gas to the European nations like France, Germany, Spain, Italy etc. for refineries. The Libyan crisis therefore has adversely impacted the world market. The prices of crude oil have escalated tremendously, touching $108 per barrel (Kollewe, 22 Feb. 2011). The global stocks have taken a severe battering which threatens the still fragile economic recovery across the globe. Fatih Birol, International Energy Agency’s chief economist says that ‘Oil prices are a serious risk for the global economic recovery’ (ibid). Indeed, if the violence continues unabated in Libya, there could be huge ramifications on the global economy. In Libya, most of the foreign refineries have closed down for fear of security. The oil supplies have been curtailed and there is genuine threat to the closure of Suez Canal that is the main route for trade across Europe and America. ... Read More
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