All other things staying the same, oil prices have always been inversely proportional to peace in the Middle East. The moment any tension or war breaks out in the Middle East, oil prices start rising. The logic is pretty straight forward given that the region has some of the biggest oil fields in the world and produces bulk of the oil that the world consumes.
Any tension is seen as a threat to supply of oil in the future, and taking that possibility into account, oil prices start to go up.
But this theory doesn’t seem to be working in the recent past. The Islamic State of Iraq and Syria (ISIS) has been waging a war in the region for a while now, but oil prices instead of going up, have been coming down. The international crude oil price of Indian Basket as on September 30, 2014, stood…
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