If the current situation in Iran does not improve over the next few weeks the world is looking at sanctions being put into place over Iran that could reduce the amount of available oil in the world by 5%. If the situation was to be resolved today, we would see the price of a barrel of oil drop somewhere in the vicinity of $6/barrel.
The Iran nuclear controversy along with the constant problems with attacks in Nigeria have put even more of a strain on the world’s supply of oil. Nigeria is the 11th largest oil producer in the world and relies on the export to drive its economy. If the rebels that are attacking the wells and refining operations succeed in getting what they want, the control and hording of oil, the price of a barrel of oil will probably break all previous records. Alternative fuels are sure looking good, aren’t they?