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IHS Global Insight chief economist Nariman Behravesh on how the U.S. Embassy attack in Libya could impact oil prices.
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This -- growing tension in the Middle East could be taking the spotlight away from some of the other big financial stories we would ordinarily be talking a lot.
About today whether the Europe and a big German court ruling or maybe what the Federal Reserve will do here in the United States and let's bring -- -- -- -- and -- and is the chief economist -- -- just global insight Tamoxifen.
Massachusetts if I get by guess Europe.
For better or worst to so I think it's pushed out of the the headlines.
What does that mean does -- make anything that's happening in those other regions I mentioned less important know what's your -- Well certainly the European situation it is still the biggest economic threats.
That's out there to the US until the rest of the world but.
But the situation in Libya clearly as worries some.
Not so much in terms of what happened obviously very tragic events and obviously that has to be a response but the worry here is that if we don't play our cards right.
This could lead to further instability in Libya which is just sort of coming out of a very difficult situation.
-- and that instability could potentially threaten.
Oil supplies from from Libya which have been increasing recently and helping to keep prices down.
So it's a very small volatile situation and we just got to walk a very fine line.
Obviously you know.
This can happen this kind of an event is is is unconscionable.
But at the same time we've got a bigger picture worry about which is -- -- They be up more on a day like this with the European -- printing money like crazy so maybe they're off led the highs that they might be on I don't know.
But -- but so far relatively stable now from the point of view the economy you're saying we need to start thinking about this region.
More than more than we are and what are the risks.
Well certainly we need to be thinking about this region this -- -- big terrible oil producing region I mean that's that's the direct pulling back to the -- last thing any instability.
In the Middle East and North Africa has potentially big ramifications.
For.
For oil prices and for gasoline price in the US and then of course the economy so.
So today we we just just because.
We topple the dictator doesn't mean underwear back because stable situation and -- bottom line bottom line on the money printing continue is that fair both in Europe that it will here.
In the United States with Federal Reserve -- well.
Absolutely.
Yeah what we fully anticipate that tomorrow the Fed will announce.
Got QE3 is -- -- up next round of bond purchases and and many other -- the idea being that essentially put a floor on US growth -- -- they the outlook from deteriorating -- an economic analysis is always environment Arabic.
