Yesterday, the Arab League, which is arguably the planet's most impotent organization, actually requested the United Nations to establish a no-fly zone over Libya. They never speak unkindly of Arab despots. Even more incredible, the Saudi military entered Bahrain to protect the monarchy. In other words, one Arab nation "invaded" another.
In a normal environment, the price of oil would skyrocket upwards. Instead, it is down over $3 per barrel. Investors around the world are trying to raise cash and must sell assets, including oil. In addition, it is unclear if the demand for oil will decline in the short term. This change clearly reflects our preoccupation with the impact of the tragedy in Japan and its aftermath.
While it hard to focus on other issues, it is essential to maintaining perspective. (The U.S. economy continues to grow nicely. Did you notice that HP just increased their dividend by a whopping 50%?) This too will pass, and we can get back to hyper-ventilating over the price of oil.
