Food Prices Fuel Egypt Unrest
"Companies need to consider what an oil shock would do to their business and create a contingency plan for that event. It may not happen, but at this point a company that didn't plan ahead would look pretty negligent if something did happen," Colas said.
Doug Roberts, chief investment strategist for Channel Capital Research, shared a similar sentiment. He told TheStreet that a disruption of the Suez Canal, a narrow passage where millions of barrels of crude oil pass every day each year, would lead to spiking oil prices and significantly higher costs for companies with global operations.
Businesses around the world that rely on oil and goods shipped through the Suez Canal would either need to look for alternative suppliers that do not travel through the passageway, or for alternate, more expensive shipping routes such as heading south and circling around South Africa.
Oil tanker shares like
(OSG) and even
(DRYS), which operates dry-bulk ships but also operates a small fleet of oil-exploration ships, soared last week as the political turmoil in Egypt triggered
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV