Time for an Oil Supply Cutoff Hedge?

August 7th, 2014
in contributors

Written by , Morss Global Finance

With civil/tribal/religious/ethnic/terrorist wars raging in many of the leading oil exporters, is it not just a matter of time before global oil exports are curtailed? The countries with asterisks in table below are the ones to be watched carefully.

Follow up:


Source: US Energy Information Administration

Nigeria has been in the news recently because of abducted children. But the international search for them highlighted just how risky things are there. No children recovered with the terrorist group Boko Harem seemingly doing whatever they want.

Iraq? Well who knows what will happen next, and Iraq is the 4th leading oil exporter.

Russia, Iran, and Kazakistan have asterisks not because local disruptions are likely but because how they might use oil as a political bargaining tool.

Venezuela has been unstable ever since Hugo Chavez passed away and the economy is in tatters.

And then we have Libya: yes, the new parliament just met, but a civil war is raging with countries pulling their embassy staffs.

My Conclusion
It takes just one of these situations to escalate resulting less oil on the world market and resulting price spike.

In these circumstances, it would seem prudent to include some "oil" in your portfolio. If you track oil companies, choose one. For those that do not, consider adding an ETF such as United States Oil Fund, LP (USO) or PowerShares DB Oil Fund (DBO).










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved