As Iraq Teeters On The Edge Of Civil War, What Will Be The Impact Of An Iraq Oil Shock On The Global Economy

Iraq Oil Shock Would Kill World Economic Recovery, Experts Warn -- Andrew Critchlow, The Telegraph

As violence threatens Iraq's oil industry, experts fear crude at $130 per barrel would damage the global economy

Open warfare between the government and rebels in Iraq would pose a threat to the global economic recovery should oil production from the war-torn Middle East state suffer a serious disruption, analysts have warned.

Brent oil prices climbed as high as $110.25 (£65.59) on Wednesday amid concerns that 3.5m barrels per day of Iraqi exports could be knocked out of the market by the violence that has seen al-Qaeda forces seize control of Mosul, Tikrit and Samarra.

"The worst case scenario is that we see production from Iraq slip down to levels in the last Gulf war, then oil could spike $20 a barrel very quickly," Ole Hansen, vice-president and head of commodity strategy at Saxo Bank told The Telegraph. "In that scenario, the entire economic recovery, which is still fragile, could stall and we could even slip back into recession in some regions."

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More News On The Impact Of An Iraq Oil Shock On The Global Economy

Dicker: Mosul Falls to Insurgents in Iraq -- Now What Happens to Oil? -- The Street
Iraq crisis: What the Mosul siege means for OPEC -- Nick Cunningham, CSM
Iraq violence disrupts OPEC agenda -- John Defterios, CNN

My Comment: Chaos in Iraq. Libya on the brink of civil war. Nigeria at war against Boko Haram. Unrest in Venezuela growing. All of these countries are major oil producing nations .... and all of them facing major unrest. It's not hard to figure out where the price of oil is going to go .... and how it will impact the global economy.In short .... higher prices, and a global recession.