On the background of geopolitical crisis in Iraq is increasing the price of crude oil, and this growth is not going to stay, as the chief oil analyst at Oppenheimer Fadel Gheit.
“Iraq is producing 3 million barrels of crude oil per day,” – said Gheit. Therefore, “if Iraq will stop exporting oil … in addition to the destabilization in Libya and Nigeria, the oil supply to the world market to decline by 4 million barrels. And it will raise the price of oil at $ 10-15. “
On Thursday, the price of a barrel of crude oil was $ 106.50, a maximum of 9 months, and may rise above $ 120. And it’s not that investors seemed impossible Gate reminds us that “the price of oil has reached a level of $ 150 per barrel five years ago – and without any reduction in the amount of 4 million barrels.”
Sunni militants continue to seize new territory in Iraq; including the second largest city – Mosul. May soon be in trouble with the production and export of oil.
“I believe that oil prices will continue to rise. How – it depends on the supply, “but” most likely oil production in Iraq will be reduced, “- says Gheit.
According to the analyst, oil prices are already a third higher than they would be in a more stable environment.
“If the world situation was not so hard, oil prices approached $ 80 to have and not to $ 105 per barrel,” – he added.
Of course, higher oil prices will have a significant impact on the U.S. economy.
“Economic growth comes to a screeching halt when the” take off “the price of oil,” – warns chief market strategist at ConvergEx Group Nicholas Colas.