Facebook in the crowds means we are worried about contagion. Reports of a Facebook campaign for a day of rage in Saudi Arabia also is heating up the fear quotient. At the same time, Bahrain protest are shaking the nerves of the Saudi leaders as they fear that their close allies may be toppled. Then you have ongoing protests in Algeria, another OPEC member. Protests in Yemen, which the IEA reminds us is a minor oil and gas producer, but located along the Bab al Mandab, a strategic world oil shipping route. You have Iran shooting their citizens to put down dissent but somehow missing out on the international outrage because it seems that some is expected from that regime. President Obama says the violence must stop.
This is far from over, not by a long shot. If it wasn't enough, the Financial Times reported that 50% of Libyan oil production was shut, the first real loss of oil since this began. The largest short-term risk to the bull market is more oil from OPEC. The FT says that the Saudis are in active talks to increase production. The phrase "War Premium" will be back in vogue. Product price get ready for historic price jump.
Tim Geithner told the Chinese something that I have written about many times before and that is that Chinese currency manipulation may be hurting the Chinese economy more than it is hurting us.
This is a historic situation!
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at firstname.lastname@example.org.