Oil muses “war premium” as Obama denounces Gaddafi

February 23, 2011 06:00 PM

All Options Are On the Table

In what can only be described as a George Bush Sr. moment, President Obama spoke telling Moammar Gadhafi that it is basically you against the world in a speech that is reminiscent of the former President before Persian Gulf War 1.

After rattling off a list of the global condemnation by saying, "a unanimous U.N. Security Council sent a clear message that it condemns the violence in Libya, supports accountability for the perpetrators, and stands with the Libyan people. This same message, by the way, has been delivered by the European Union, the Arab League, the African Union, the Organization of the Islamic Conference, and many individual nations. North and south, east and west, voices are being raised together to oppose suppression and support the rights of the Libyan people."

President Obama sounded like he was beginning the building of a coalition when he said that his administration was to, "prepare the full range of options that we have to respond to this crisis. This includes those actions we may take and those we will coordinate with our allies and partners, or those that we'll carry out through multilateral institutions."

This may include a military option of course and as the market started to ponder the gravity of this situation, the oil market began to rally. Now the question is if Obama has the international gravitas to stop the massacre in Libya and lead a global coalition and command the same respect as President George Bush Sr. did.

Many have questioned whether President Obama has come out fast enough and strong enough regarding the situation in Libya. The White House has been silent while Libya has endured, "suffering and bloodshed that is outrageous and unacceptable." Things like "actions {that} violate international norms and every standard of common decency." This could lead to a collation similar to the one that President Bush set up to oust Saddam Hussein from Kuwait. Also it could lead to more uncertainty in the region.

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About the Author

Phil Flynn is a senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. Phil is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets.