Death Osama bin Laden Impact To Oil Prices

Posted by Zotta Rendevouz

Death breathtaking Osama bin Laden can not do much to allay the fears of instability in the Middle East and reduce the price of crude oil and gasoline, which threatens to break records this summer.

energy experts acknowledge may be simply too early to say what the impact of death difficult to Al-Qaeda may be the soul of the prices started to climb earlier this year, with tensions in the oil-rich region of Middle East.

Crude futures fell in Asia immediately after the announcement of President Barack Obama on Sunday night that U.S. forces bin Laden had been killed, but only 11 hours, the price rose nearly 50 cents to $ 114.36.

"The immediate reaction of the market, it is good news in terms of risk, but there are many other major risks that are deeply embedded in the price of oil in the moment," said Daniel Yergin, Pulitzer Prize-winning oil historian and director of IHS Cambridge Energy Research Associates.

"The main thing that has been the evolution of oil prices recently is change the geopolitics of the Middle East and the strengthening economic recovery," he said. "This changes nothing."

"In any case, this will push prices higher," said Phil Verleger, energy economist at the Haskayne School of Business at the University of Calgary. "It's probably good for the economy. You can see all the people at the White House saying" the United States. It's nice to have a success. The dollar should strengthen. This will only encourage the demand for petroleum products that we can not do more. "

Emphasizing that even energy experts are still trying to digest the news of the death of Bin Laden and his impact, Verleger, a senior policy discussions on energy in the Carter and Ford administrations, made a case for almost all impact scenarios.

"The capture of Bin Laden is not going to do anything" to affect world prices of oil, he said. "This is a market that has driven growth. ... Middle East ... are trying to maximize revenue. The Saudis are setting the price of crude oil acid on the basis of a price that maximizes revenue from around the world. "

David Goldwyn, a former special envoy Obama administration for international energy affairs at the State Department, is to see how countries like Libya, Yemen and Bahrain react.

"In the short term, the death of bin Laden could have a material effect on the stability of oil producing countries 'systems', and then the price of oil," Goldwyn said.

Gas prices have climbed to record levels this year, oil prices began climbing in February together with increased political tensions in the Middle East. speculators entered the market on fears that the unrest that causes real disruption in world oil supply, which, together with rising oil demand has continued in China and other emerging economies and improving the economy United States.

The uptick because of gas prices has caused uproar in the beginning of the partisan majority on Capitol Hill that has colored the debate in the summer of 2008 - when the price of regular gas hit a national level as high as $ 4.11 going Presidential elections in the fall elections.