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Extra Credit 1 - possible incursion into north Iraq by...

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Michael Dontis October 22 2007 Economics On Tuesday October 16 the price of a barrel of oil jumped to a new high. Experts predicted that the price could reach 100 dollars each barrel. Crude oil for November reached a new high of 87.61 for each barrel, up 1.48. Although the economy is not affected by energy prices, experts predict growth will be reduced. This caused a “stock-sell off” with broad market indexes lowering about half a percent. It is believed that the conflict on the border between Turkey and Iraq that increased tensions in the Middle East that can hurt the supply of oil. Since the war began the supply of oil from the Middle East has became scarce and uncertain. The constant bombings of the Iraq pipelines are a major contributor to it. Analysts believe this is just an over-reaction by the market to a
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Unformatted text preview: possible incursion into north Iraq by Turkey. Antoine Haliff, a market analyst, said that prices will drop once people realize that supply will not be affected. The demand for oil has dropped since the end of the summer driving season. While prices have been rising the supply of oil has not decreased. Analysts claim that the rise is just market speculation and will end soon. What I want the class to get out of this was that foreign demand for oil only increases our costs. Also war can increase our demand, thusly making the price higher. Only by tapping into our own supply of oil can we significantly lower our demand of foreign oil and prices of crude oil....
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