Yesterday White House Chief of Staff William Daley said the Obama administration is considering tapping into the strategic oil reserves, signaling that the White House is concerned that the unrest in Libya might set off a case of supply shock. Libya is the 13th largest oil exporter, according to The Economist. As of now, the top oil exporter, Saudi Arabia, is increasing its output to make up for Libya's. But if that stops, and/or we see a cut in the supply from other countries in the region, like Algeria, we would be in for a big jump in oil prices.
The Economist offers up this narrated slide show to explain the potential impact of an extended shutdown of Libyan oil exports on oil prices:
Posted
03-07-2011 9:22 AM
by
Graham Griffith
Filed under: The Economist, oil prices, oil, commodities, commodity prices, commodity shock, algeria, saudi arabia, oil exporters, libya, supply shock