The Domino Theory – 2011 Version



Tunisia’s government has been toppled.  Is it the first domino to fall?  What if it were followed by Egypt, then Jordan, then Yemen and finally, the biggest of all- Saudi Arabia?  And, within the new governments, what if the bad guys controlled?  Would the flow of oil to the West be threatened?  What would be the effect on oil prices?  Interestingly, I studied a somewhat similar scenario several years ago involving a theoretical Iran/Israeli conflict scenario and the closing of the Strait of Hormuz. I developed a list of energy companies who source their oil and natural gas outside the Persian Gulf and whose share price would be lifted if the flow of oil from the Persian Gulf were threatened.  This week, I intend to dust off that analysis and report on it to you in the next Weekly Commentary.  Send me an email if you want this info as soon as it is available.

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