It All Comes Down to Oil

With all the tumult in the Middle East, and the latest Libya, oil has shot through the roof. Nymex has gone to $105 while Brent has reached its 2.5 year high at $120 today.Some news reported that price is heading north because the world is worried that the crisis from Egypt and Libya could spread to Saudi Arabia, who is arguably the most important figure in the oil industry. If their supply is disrupted, I won't be surprised if $148 in 2008 could be repeated or even surpassed.

But the frightening part of the story is the fact that oil is really the most influential commodity in the world. Any price swing could virtually do some damage to many countries. I mean just these past several days, many stock indexes all over the world are turning red. Dow is red, Indonesia is red, Nikkei is red, FTSE is red, and the list goes on. Companies across various industries are affected by oil in one way or the other, and sometimes the damage can be devastating. So business owners, you better take any precautionary steps as necessary to minimize the upcoming oil damage. Just remember the lesson we learned from 2008 and don't repeat the same mistake.