As the crisis in Libya continues and oil exports are disrupted it's important to understand the impact this has on various economies. As the 18th largest exporter of oil, the impact on the global economy as a whole is somewhat muted, although their grade of oil is higher than others. Regionally though the impact represent a significant risk to individual economies. Portugal, Ireland, Italy, Greece and Spain already faced with struggling economies and financing concerns are at greatest risk. The chart below shows how much oil each country imports from Libya as a percent of total imports.
Anti Gaddafi forces control the eastern Libyan region which is a significant portion of oil facilities. Tripoli and the west are held by pro Gaddafi forces. Imagine if Gaddafi destroys the facilities before losing power? This explains why the US and other countries are moving military assets into the region and the discussion of a no fly zone is accelerating. The most recent COT report showed commercial net positioned for a sustained rise in oil prices.
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