Haidar Ali AlDulaimi, Asam Mohamed Aljebory, Mustafa Jawad Kadhim A-Bakri
We investigate the effect of two kind of variable on world oil prices, first the classical variables ( global demand for oil and global oil supply) vs. the Political Events that effect oil price such as (crises, wars and tensions in the oil production regions). We added important variable (the price of Gas which is considered the alternative commodity to oil), and dummy variable which represent the tension in the oil production regions. We use strategy for advancement bookkeeping is to break down the watched arrangement into the segments relating to each auxiliary stun. Suggested by Burbidge and Harrison (1985) to change watched residuals to basic residuals, and then figure the dedication of the various collected auxiliary stuns to each watched variable for every perception past some point in the estimation test.