Middle East: Discussion

[Guest]

Via Eric Bolling of Fox News:

The Suez Canal and the Suez Canal pipeline transport about 4.5 million barrels of oil per day between the two, so when oil investors/traders see protesters on tanks in the Suez, it creates panic because they’re concerned about the delicate balance between supply and demand on the world’s oil.



Any disruption in oil supply spikes prices, and these events are certainly cause for disruption.



Also very important is the geographic location — just across the canal is Saudi Arabia — the world’s largest producer of oil. If this unrest spills over into Saudi Arabia, prices could double to [size="5"]$200/barrel[/size]!

The effect on the U.S. economy would be disastrous and hamper the economic recovery.