World Bank Warns Oil Price Could Soar to Record $150 a Barrel

GUARDIAN US: Escalation of Israel-Hamas war into Middle East-wide conflict would disrupt oil supplies and stoke food prices, says Bank

Oil prices could soar to a record high of more than $150 a barrel if the war between Israel and Hamas leads to a repeat of the full-scale conflict in the Middle East witnessed 50 years ago, the World Bank has warned.

In the first major assessment of the economic risks of an escalation of the war beyond Gaza’s borders, the World Bank said there was a risk of the cost of crude entering “uncharted waters”.

A “large disruption” scenario comparable with the Arab oil boycott of the west in 1973 would create supply shortages that would lead to the price of a barrel of oil increasing from about $90 to between $140 and 157. The previous record – unadjusted for inflation – was $147 a barrel in 2008.

“The latest conflict in the Middle East comes on the heels of the biggest shock to commodity markets since the 1970s – Russia’s war with Ukraine,” said Indermit Gill, the World Bank’s chief economist. “That had disruptive effects on the global economy that persist to this day. » | Larry Elliott, Economics editor | Monday, October 30, 2023

Witness - To the Last Drop - Part 1
A small town Canada is facing the consequences of being the first to witness the impact of the Tar Sands project, which may be the tipping point for oil development in Canada. Filmmaker Tom Radford describes witnessing a David and Goliath struggle

Qatar Becomes First Arab Country to Recognize Libyan Rebels
INTERNATIONAL BUSINESS TIMES: The tiny Persian Gulf state of Qatar has become the first Arab nation to recognize the rebels of Libya as representing that country’s legitimate ruling body.

The announcement comes following an oil marketing contract between the Benghazi-based rebels and Qatar.

Reportedly, the Qatar Petroleum company agreed to market crude oil produced from oil fields in eastern Libya, which are now firmly under rebel control.

"We contacted the oil company of Qatar and thankfully they agreed to take all the oil that we wish to export and market this oil for us," said Ali Tarhouni, a rebel official in charge of economic, financial and oil matters, according to media reports.

"Our next shipment will be in less than a week," he said, speaking from the rebel-held city of Benghazi. » | Monday, March 28, 2011

Brace for $200 Oil If Unrest Hits Saudi Arabia
Commentary: Riyadh pulls the strings on global markets’ next act
MARKET WATCH: SEATTLE — Strong markets are supposed to rise along a wall of worry. This one was rising very nicely amid plenty of worries until investors caught a whiff of the idea that Saudi Arabia could fall victim to the unrest enveloping the Middle East.

So now stocks are slipping and crawling. It’s all about the optics. If you can see a problem, then you can ignore it. But if you aren’t sure what you see, paralysis ensues.

Any real threat that the Fahd monarchy and Sunni hegemony in Saudi Arabia could possibly come under attack would spark more than a worry. It would be thunder, lightning, a hurricane, a tornado, a tidal wave and earthquake all rolled up in one sand-colored bombshell.

No one really cares about Libya, after all. The two sides there can blast each other to kingdom come for all that most investors in London, Paris, Frankfurt and Wall Street care. Sure, there’s a decent amount of oil at stake at Bayda, Benghazi & Beyond, but concerns about the region begin and end at Saudi borders. >>> Jon Markman, MarketWatch | Thursday, March 10, 2011

Higher Oil Keeps Wall St. On Edge
Mar 7 - Summary of business headlines: U.S. crude rallies above $105 as violence in Libya continues; U.S. consumer credit up in January but consumers show sign of restraint; Stocks fall in U.S. and Europe. Conway G. Gittens reports

Libya: Oil Price Surges as Gaddafi Forces Gain Ground and Storm Key Town
THE DAILY TELEGRAPH: The conflict in Libya helped propel the price of oil towards $120 a barrel on Monday as forces loyal to Col Muammar Gaddafi and rebels trying to overthrow his regime formed a front line around the strategic oil town of Ras Lanuf.

Saudi Arabian political activists have also added to energy fears with calls for a day of protest this week.

Britain and France were leading diplomatic efforts to win support at the United Nations for a no-fly zone. These moves in part follow intense lobbying from the rebels. They have pressed Western oil firms to raise with their governments the spectre of losing costly infrastructure in the east of the country. >>> James Kirkup, Praveen Swami and Adrian Blomfield in Benghazi | Monday, March 07, 2011

Libya Hopes Oil Does Not Become Weapon
REUTERS: Libya hopes tensions with Western countries over a popular revolt in the country do not reach the stage where the Tripoli government considers oil as a political weapon, a top oil official said on Wednesday.

Shokri Ghanem, chairman of Libya's National Oil Corporation, also told Reuters in an interview that Libya's troubles had created the country's worst energy crisis in decades and Libyan supply disruptions to world markets could push oil above $130 a barrel in the next month if troubles persist.

Oil markets will be watching closely to see if the departure of oil workers fearful of violence in Libya will further cut output in the world's 12th largest exporter. >>> Reporting by Michael Georgy; editing by Keiron Henderson | Tripoli | Wednesday, March 02, 2011

Wall Street Rattled by $100 Oil
Mar 1 - Summary of business headlines: Oil spikes close to $100 on Middle East worries causing a 1.5 percent drop across Wall Street; Fed chief thinks price spike will be short; Factory activity, auto sales point to stronger recovery. Conway Gittens reports

Wall Street Dives as Oil Hits $100
Feb 23 - Summary of business headlines: Stocks fall for second day as U.S. crude touches $100 a barrel; U.S. home prices continue to fall; Apple expected to unveil new iPad, competitors line up. Conway Gittens reports

Libya Unrest Raises Oil Concerns
This is the first time that the changes sweeping the Arab world have hit a major oil producer and there are now fears that the spike in oil prices could hurt the fragile global economy. While Libya only produces two per cent of world oil production, 85 per cent of that is sent to Europe. Al Jazeera's Nick Spicer reports from Berlin

$100 Oil Could Shock Recovery
Feb 23 - U.S. crude oil prices touched $100 a barrel, sparking new concerns about the impact on a still frail U.S. economic recovery. Bobbi Rebell reports

Deepwater Horizon Oil Spill: Barack Obama Flies in Amid Mounting Criticism
THE GUARDIAN: Fishing fleet on standby for attempt to block slick as administration preempts 'slow to react' charge

Barack Obama stepped into the crisis over the oil spillage in the Gulf of Mexico yesterday, amid growing criticism that the US administration and BP were failing to get a grip on the potential catastrophe.

The president flew to New Orleans and travelled on by road to Venice, a small fishing town at the mouth of the Mississippi which has become the command post for the rapidly escalating rescue preparations.

As rain poured down upon him, Obama gave his assessment of what he called the "massive and potentially unprecedented environmental disaster" caused by three leaks still uncapped on a BP oilrig south of the Louisiana coast.

He warned that it could take days to stop the leaks, and said he recognised that "people are understandably frustrated and frightened, particularly as people in this region have already been through more disasters than anybody should have to bear."

And he issued a stern message to the British oil giant: "BP is responsible for this leak. BP will be paying the bill." >>> Ed Pilkington in Louisiana | Sunday, May 02, 2010

THE GLOBE AND MAIL: Oil spill threatens to sink Obama's energy plan: Political damage will be hard to contain, not least because the slick could shatter the President's shaky compromise on offshore drilling >>> Konrad Yakabuski, Washington | Sunday, May 02, 2010

WATCH AP VIDEO: BP's reaction to clean-up criticism: BP reacts as federal officials and Louisiana Governor Bobby Jindal say they're worried that the company isn't doing enough to get ready for a fast cleanup. | Saturday, May 01, 2010

Oil Hits $75 a Barrel
FINANCIAL TIMES: Oil prices rose on Friday to $75 a barrel for the first time since August on renewed unrest in Nigeria’s delta oil producing region.

Low US petrol inventories and strong summer demand also contributed to the bullish sentiment.

Analysts said further price increases were likely as the Movement for the Emancipation of the Niger Delta, the group thought to be responsible for most of the attacks in the region, called off this week a one-month truce. Attacks by militants had cut about 25 per cent of Nigeria’s oil production.

Shell, Nigeria’s largest foreign oil producer, said recently that it would not re-start its production in a key sector of the delta region for the rest of 2007 as security concerns persist. Oil hits 11-month high of $75 (more) By Javier Blas in London

Mark Alexander