Political turmoil in Libya is pumping up oil prices globally and creating investment opportunities outside of the rocky Middle East, says Mohamed El-Erian, co-head of Pimco, the world's largest bond fund.
Unrest in Libya has driven crude oil prices above $100 a barrel. Yet higher crude prices are good for oil producers Russia, Canada and Indonesia, who aren't experiencing political upheaval.
So invest there, El-Erian says.
"First of all you look for the new sets of risks and the new set of opportunities," El-Erian tells CNBC.
"In terms of opportunities, there are many oil exporters out there who do not have geopolitical issues who are benefiting from higher oil prices. There are many countries out there. For them, all these geopolitical issues are good things. They are better off."
Furthermore, El-Erian adds, political turmoil's impacts on oil prices are probably temporary, although prices have been high for long enough to fuel worries over stagflation, a situation in which inflation rises while the economy remains weak.
"What Bernanke and the rest of us are looking at is a new wind, a wind of stagflation," El-Erian says.
Some say crude prices could climb way past $200 a barrel if political unrest halts exports from Libya and Algeria, the latter of which is starting to see demonstrations build.
"If Libya and Algeria were to halt oil production together, prices could peak above $220 a barrel and OPEC spare capacity will be reduced to 2.1 million barrels a day, similar to levels seen during the Gulf war and when prices hit $147 in 2008," according to a report from Nomura, a Tokyo-based bank, Bloomberg reports.
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