August 4, 2014
WHAT HAPPENS TO OIL PRICES when ISIS takes Baghdad? “As of today it is at least theoretically possible to scenarize a world oil shock at least equal to the so-called ‘Arab oil embargo’ of 1973-74 in terms of oil export supply cuts from several key regions and producer states – Russia, Iraq, Libya, Syria, Yemen and possibly the GCC Arab Gulf exporters.” Whether you buy this or not, it’s certainly an argument to push domestic production as quickly as possible. I suppose opening federal lands for exploration is out of the question, though . . . .
And anyway, we’ve got Smart DiplomacyTM on the job, so no worries!
UPDATE: Richard Fernandez asks: “Whose side is Obama on?”
ANOTHER UPDATE: ISIS Advances As Kurds Run Out Of Ammunition.