If the conflict spreads to other parts of the region especially iran, it could immediately impact well prices because even though iran has been under sections for the last two years it has pumped well quietly and provided them to customers across the globe. The white house has turned a blind eye especially with the last year or two because its been trying to smooth relationships between iran and the western world. Now if the white house enforces the sanction that means the supplier from sanction that means the supplierfrom iran could be cut off and comes at a time when oil supplies have been tightening because saudi arabia and russia, the two largest exporters of oil in the world, also part of 0pec , have been reducing Oil Production by 1. 3 alien Barrels Per Day and will keep doing it until the end of the year. There is a good chanceit the year. There is a good chance it could continue into next year as well so if this happens and they will be a where there will be less oil supply, wh
just the fear there would be, that is all you need? guest: well, it could be that but, when we say that to me on the air they get the wrong impression. they think when we talk about fear that it doesn t serve a valid economic purpose and the truth is, it does. if we look at the rising glenn prices, people are angry, people are wondering why the speculators are driving up the price and i tell you the market is doing the same thing people in illinois and kentucky should do. if they think a storm is coming, and you go out and buy food. in the world we think there is a geopolitical storm, a possible war in iraq, cut off of supply, and countries are preparing for a cut off supply. in europe, asia, they are bying as much oil as they can because they are afraid they cannot get it. if the storm passes the prices will come down.