With most of the world rejoicing that number one terrorist Osama Bin Laden is dead many want to know if this will affect the price of the Iraqi Dinar. With the reaction of stock futures and Asian markets early Monday morning it is apparent that investors are happy about the news. However, it remains to be seen if this will be just a temporary euphoria that will only last a few days or if the news will help extend markets for the long term.
Right now as of the time of this post, Japan's Nikkei index is up 154 points, closing for the first time above the 10,000 mark since the devastating earthquake of March 11. The price of crude oil has also slipped the most in a two week period by $1.72 a barrel and the US Dollar is up on news of Bin Laden's death.
With investors feeling less edgy and probable stability being brought to Iraq and possibly the rest of the Middle East region, investors in the Iraqi Dinar should certainly feel much more confident in their purchases of the Iraqi currency. If the leader of al Qaeda, the world's largest terrorist organization is no longer leading his masses, the economy of Iraq is sure to take a turn for the better as many more people will feel at ease to spend and start businesses as the threat of terrorist activity should subside. Now this isn't a sure thing as there are probably plenty of less charismatic leaders waiting in the wings to take Bin Laden's place and there may even be a slight upsurge in violence on news of Bin Laden's killing, but the long term outlook should mean more stability.
US stock futures are also up on Bin Laden news thus setting a precedent for possible stability of the Iraqi economy as well. Think long term though as there is always a bit of a reactionary surge in markets after such positive news. There are still plenty of reasons to be very wary of the world economy especially with mounting debt in the United States and Greece instability. Be cautious as you venture into currency trading and or buying large quantities of Iraqi currency.
Please offer your opinions and your take on the news of Osama Bin Laden's death. Will it or will it not affect the Iraqi Dinar? Leave your comments below.
For the first time in more than 2 years the price of oil has topped the $100 per barrel mark and topped out at $103.41. The price is the WTI Crude delivery for April 2011. Brent crude in London also peaked today at $116.99.
Because instability is spreading across the middle east and into oil rich countries, investors are banking on expensive oil. Also, many countries involved in oil production in Libya and other countries in the Mideast are pulling out of their operations thus driving the supply of oil lower and the cost higher. For example, Italy's Eni oil company suspended its operations in Libya that produce 244,000 barrels per day and Germany's Wintershall oil operations shut down its facilities that produce upwards of 100,000 barrels a day.
Libya produces 1.6 million barrels per day which is only 2% of daily world output however, the fear is that turmoil may spread to the super producer oil nation of Saudi Arabia causing the price to skyrocket. To alleviate possible rioting and upheaval amongst Saudi citizens, the royal family has promised to pay every citizen some $3,000 each. It seems as if this money just materialized out of this air and one has to wonder why there is much cash laying around to pay off the masses.
The per barrel price is obviously also effecting the at he pump price in the United States and all over the world. In Central Florida prices for regular have gone from $3.08 per gallon to $3.15 a jump of 7 cents in a day. However, I haven't checked the current price at the pump today, so it may have gone higher.
As of the current time of this post, oil has now gone down below the $100 barrier and is at 99.39. Since fighting started in the middle east oil has gone up some $15 a barrel, but analysts expect the price to drop if Gadhafi (there's probably a million ways to spell his name) is to resign. No telling what will happen if he is killed as this may cause additional turmoil and chaos.
As the turmoil fails to subside in Libya, oil prices increased to over $99 a barrel on Wednesday Feb 23. Troops that are loyal to Libyan leader Moammar Gadhafi fought with protesters who seem to be grabbing more control of the oil rich nation.
The cause of the spike could many analysts believe is from one third of the national oil output of Libya being cut off. That amounts to a little more than 350,000 barrels a day. This is mostly due to foreign oil company workers fleeing the country to get away from the violence. It may also stem from Gadhafi's threat to sabotage his own refineries and oil fields so as to not have this natural resource fall into the hands of his foes. Unfortunately this shows the Libyan leader's true madness and that he is truly unfit to even be running a burger stand, much less an entire nation.
Oil prices could rise further if protests spread into even more oil rich nations such as Saudi Arabia and possible Iran. However, widespread protests in Iran are unlikely since the government shows little restraint on its brutal crackdown on anyone that threatens the regime.
Meanwhile, the US Stock market is seeing a second straight day of deep drops because of high oil prices and the continued Mideast unrest. As of this post the DOW is down 121 points and the DOW transports are down below the 5,000 mark at 4,953. With today's present loss of 133 points that represents an almost 7% loss over the last 2 days in the transports.
I hope you aren't married to your investments because now isn't the time to be in love with what you own.
