$125 oil price warning as Iraq dissolves into chaos after Al Qaeda group takes second largest city « ArabianMoney

$125 oil price warning as Iraq dissolves into chaos after Al Qaeda group takes second largest city « ArabianMoney:



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A big hike in oil prices is the last thing the global economy needs this summer as it battles major headwinds from a Chinese property bust to a contraction in Q1 US GDP. But the takeover of Mosul, the second largest city in Iraq by an Al Qaeda splinter group is a major blow to Middle East security.

While oil prices may not hit $140 a barrel, instability in Iraq will definitely set prices on an uptrend, says Nariman Behravesh, Chief Economist at IHS. If this is not a sell signal for stocks what is?"

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