Prices of oil on the international markets are forecast to jump to USD 200 per barrel in the event the forecast military strike on Syria rippled across the region, according to Kuwaiti experts.The experts, interviewed by KUNA, said the Arab Gulf region “is the key that will decode the prices according to effects of the crisis,” also indicating at significance of duration of the predicted military operation.
Khaled Boudai, the chairman of “Al-Ofok” studies center, said rise of the oil prices, during the past days, was due to the “war atmosphere,” predicting a USD 10 pb rise of the prices at actual start of the strike, provided that the action remained within Syrian territories, thus the prices might reach USD 125 pb.
If the crisis spills over to neighboring countries, the crude supplies will be heavily affected, thus the prices will jump to unprecedented levels, he said, however they will fall back to a lower level once it ends.The prices now have been bullish due to the prevailing regional tension and noticeable improvement of economies of influential nations, namely the United States.
Currently, the oil price is in the range of USD 115 pb, but if the war erupts, it will reach USD 150 pb and may also climb to USD 200 pb, he warned, noting that such possible drastic increase of the prices will happen if the scope of hostilities expand.Moreover, speculations are quite influential in such a tense atmosphere, and now it is the right time for the speculators to be highly active.
Sheikh Fahad Al-Daoud, an expert in oil strategies, said the Syrian crisis will “strongly overshadow the oil prices,” expecting rise to USD 140 pb in case the attack was confined to Syria. “But if the action expands, the price will reach USD 200 pb.” In case the military strikes on Syria proceeded for more than month, the crude prices will jump to higher levels, supplies and reserves will be affected and the demand will grow dramatically due to the deep concerns resulting from the war.
Dr. Talal Al-Bethali, an academic professor and oil expert, expressed his belief that the prices would not rise more than USD 10 pb barrel due to the fact that Syria was not a a key oil-producing country. “But if shrapnel of the war spill over to Iraq and Turkey and the Arabian Gulf and Iran the prices of the oil may jump to USD 200 pb,” he cautioned, also noting that Western officials have indicated that the military action would not last for a long time.
He concurred with the other experts that now while the market is gripped with jitters, the speculations have gained heat and alluded the rise of the prices earlier this week to the tense conditions.The Arabian Gulf region remains the “the key of the prices” due to the fact that the regional producing countries possess bulk of the world’s oil, in terms of output and reserves.Oil prices jumped on Wednesday to more than USD 111 pb.
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