Political Shock affect on Commodity Prices

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 01: INTRODUCTION1

Background of the Study1

Significance of the Study2

Aims and Objectives of the Research3

Research Questions3

CHAPTER 02: LITERATURE REVIEW4

Iraq War and affect on oil prices4

Libya's War and affect on oil prices7

Libya's War and affect on oil prices12

Ukraine Russia gas dispute affect on gas prices22

CHAPTER 03: RESEARCH METHODOLOGY29

Research Question and Aim of the Study29

Research Design30

Case Study Approach30

Support for choosing the Case Study approach31

Research Approach32

Content Analysis33

REFERENCES36

CHAPTER 01: INTRODUCTION

Background of the Study

Oil is the single most valuable commodity traded on global markets. It creates vast revenues for the countries that produce and export it, but along with that money often come negative political and economic consequences. These consequences are known as the resource curse, the symptoms of which include poor economic growth, authoritarianism, and civil war. Traditionally, much attention has focused on the domestic consequences of the resource curse, that is, how oil affects the population close to its geological source. This dissertation takes our understanding of the resource curse into the realm of international relations. By virtue of its strategic importance, both militarily and economically, oil is intertwined with geopolitics. Yet oddly enough, it might be more obvious to the person in the street that oil is an important factor for international security than it is to scholars of international relations. Worse yet, while almost everyone knows that oil is important for world politics, almost nobody knows exactly how it is important.

The idea seems very compelling: oil is valuable, so it is not surprising that states should fight over it. And indeed, they sometimes do. One classic example of this behaviour came in 1990, when Iraq invaded Kuwait in part because Saddam Hussein sought to seize control of Kuwait's rich oil fields. History offers other examples: in World War II, a large part of the military strategy of Japan and Germany was shaped by their need to seize control of oil resources. In the 1930s, the Chaco War between Bolivia and Paraguay was fought over territory that was (falsely) believed to contain rich oil deposits. Yet that answer turns out to be incomplete at best. If states are simply fighting over access to the oil, it is not clear why the states that are already oil-rich should be so aggressive (Hotelling, 2001, 137).

Significance of the Study

These puzzles are intriguing theoretically. Scholars of international relations have long been interested in the causes of aggression and ...