21 Jun '13, 1pm
Drumbeat: June 21, 2013
Some 24 million barrels of oil per day or 27 percent of the world’s daily production comes from countries in the Middle East and North Africa. Until recently the oil markets have paid remarkably little attention to the deteriorating political and security situation in the region. With the intervention of the Lebanese Hezbollah militia on the side of the Assad government and the announcement from Washington that the West was going to become more actively involved on behalf of the rebels, the situation changed, the oil markets reacted, and prices started to rise. Developments in the region and their effect on oil exports seem likely to be critical to what happens to the world economy within the next 5-10 years. While there may eventually be increasing amounts of energy from other than fossil fuels, political and military developments in the Middle East are moving rapidly. It...