The Algeria hostage crisis shows how little it takes in the terms of geopolitical events to cause a spike in oil prices. As problems in the Middle East simmer, along with attacks on oil structure in Africa and a new regime in Venezuela, the number of new uncertainties increases and a sharp rise in crude price becomes more likely by the day.
Those taken hostage, some of whom were killed, worked near a gas facility in eastern Algeria. Oil prices quickly rose to $96 from $93 just three days ago. With the crisis unresolved, so is the problem of what will happen to oil prices. More quietly, at least for now, the amount of oil theft that has gone on in Nigeria has increased as rebels and profiteers steal it. And, in Venezuela, which has nationalized foreign oil interests and given oil away to neighbors, president for life Hugo Chavez is about to die after 14 years as the head of government.
It was unimaginable just a few weeks ago that oil could trade above $100 soon. It is not hard to imagine now.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
