Market sentiments play a major role in determining price of products like petroleum . Certain world events also trigger speculations which become reason for great swings in price . Examples of such events are :
- Markets react rapidly to Petroleum supply disruptions stemming from world events.
- The Middle East is currently home to about two-thirds of the world’s Petroleum reserves and about a third of global petroleum production.
- The Middle East has had mainly security related problems such as :
- Arab–Israeli wars and conflicts,
- Arab–Iranian war and conflicts,
- Arab – Arab war and conflicts,
- US–Gulf wars and conflicts , which hugely affects price of petroleum
- Radicalism
- Terrorist attacks : ( six pipelines were attacked by a leftist group in Mexico.)
- Racism
- Changes in federal laws & policies.
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