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Conflict in Iraq: What Rising Oil Prices Mean for the Economy & Investors
June 19, 2014 at 20:00 PM EDT
For much of 2014, equities advanced despite disturbing world news headlines. However, that changed last week, as U.S. stocks slipped amid news of the escalating violence in Iraq. Why the different stock market reaction? The events in Iraq pose a greater risk for markets than earlier 2014 geopolitical turmoil because there is a clear link between the conflict in Iraq and the global economy: energy prices. As I write in my new weekly commentary, oil prices spiked last week as sectarian violence escalated in Iraq, a country producing more than 3 million barrels of oil per day, at a time when production has already been falling in many other parts of the Middle East, neutralizing the benefit of surging North American oil production. West Texas Intermediate (WTI), the U.S. oil benchmark, traded above $107 per barrel, while Brent Crude, the global benchmark, hit approximately $114 per barrel. While a short-term spike in oil prices […] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
For much of 2014, equities advanced despite disturbing world news headlines. However, that changed last week, as U.S. stocks slipped amid news of the escalating violence in Iraq. Why the different stock market reaction? The events in Iraq pose a greater risk for markets than earlier 2014 geopolitical turmoil because there is a clear link between the conflict in Iraq and the global economy: energy prices. As I write in my new weekly commentary, oil prices spiked last week as sectarian violence escalated in Iraq, a country producing more than 3 million barrels of oil per day, at a time when production has already been falling in many other parts of the Middle East, neutralizing the benefit of surging North American oil production. West Texas Intermediate (WTI), the U.S. oil benchmark, traded above $107 per barrel, while Brent Crude, the global benchmark, hit approximately $114 per barrel. While a short-term spike in oil prices […]
