Oil price to hit $175-$200 if Israel attacks Iran: analysts
In a survey of oil traders, Washington D.C.-primarily based Rapidan Group explained that individuals expected an $eleven rise in the price tag of a barrel in the fast aftermath of an Israeli strike.
“Participants explained costs could rise by $sixty one/bbl below the prolonged disruption scenario in which IEA [International Energy Agency] stocks are utilised. The scenario incorporates price modify 30 days after an Israeli strike, and assumes a 21-day disruption of oil traffic via the Strait of Hormuz before returning to regular throughput of 15.5 million b/d. IEA countries offset fifty percent the decline with around 8 million b/d,” the Monetary Times quoted from the report.
“Participants said rates could rise by $175/bbl below Rapidan’s extended disruption scenario, in which no IEA shares are used. The scenario looks at cost adjust 30 days right after an Israeli strike, and it assumes a 21-day disruption of the Strait of Hormuz ahead of returning to typical throughput of 15.5 million b/d.”
The Strait of Hormuz is the planet’s most important oil route, with 40% of the world’s oil passing by means of the slender sea route among the Gulf of Oman and the Persian Gulf.
The IAEA findings arrived weeks after the United States explained it unearthed a plot by Iranian agents to kill the Saudi ambassador to the U.S.
Sources and more information:
Tweet Reuters April 2010: An Iranian warship and speed boats take part in a naval war game in the Persian Gulf and the Strait of Hormuz, southern Iran. A high-ranking Iranian official has said Iran's military will practice sealing off the Strait of Hormuz, the world's most important oil transport channel, in a provocative move that illustrates...
Closure of key choke point would send oil prices skyrocketing to 300- 500 a barrel Paul Joseph Watson Infowars.com Monday, December 12, 2011 The Iranian Army has refused to comment after a member of the country's National Security Committee said today that Iran was to practice closing the Strait of Hormuz, the most important choke point ...
( via financialpost.com )
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