Wednesday, February 23, 2011
The uncertainty over developments in Northern Africa are being felt in the United States. Libya is a major oil producing nation, but some observers see the price spike as more of a temporary bump.
"The would change if the unrest spreads to other nations." Said Dan Seiver, San Diego
State University economics professor. He said the impact would be far reaching if the monarchy in Saudi Arabia was threatened.
The crisis is also creating turmoil in the US stock market.
"When the egyptian crisis first hit, the stock market sold off," said Seiver, "but the rest of this year its been pretty much going up every day and a very nice steady increase with just a couple of hic-ups. This is the second real hic-up."
Seiver said the financial fallout is a reminder of this nation's dependence on the middle eastern oil economy.