Libya's impact on oil prices

AMHERST, Mass. (WWLP) - International oil prices fell Monday in response to the latest news out of Libya, where the regime of Moammar Gadhafi appears on the brink of collapse.

Libya holds about 2% of the world's oil. Speculators anticipate that this change in regime could bring that oil to the world markets, which has driven down the prices. Still, Michael Ash, an economist from UMass Amherst, told 22News that he thinks the global recession has more to do with falling oil prices than Libya does.

“I think a much larger issue is the ongoing recession, which is terrible news for everybody. It also represents the slack in demand for oil,” Ash said.

Ash says that because people are driving less and producing less, there is more oil available, which means lower prices.