Political turmoil in North Africa and the Middle East triggered by the change of government in Tunisia is pushing up crude oil prices. Crude oil prices, which were rather stable in the range of $70 to $80 per barrel the past year, are now hovering above $100 per barrel.
Food prices are also rising. Rising food prices are said to be behind a series of antigovernment demonstrations in North Africa and the Middle East. High oil and food prices are likely to hit households and could put a brake on the global economic recovery.
About 60 percent of world oil deposits are in the Gulf coastal areas of the Middle East. For the time being there will be sufficient crude oil and oil products reserves. But if antigovernment protests intensify in oil-producing countries, speculative funds may move to push up crude oil prices.