Top Kuwaiti Oil Exec: "Oil to $160"

Oil prices could continue to rise, and sooner than you may expect...

One of the top oil executives of the oil giant nation of Kuwait says that prices are projected to soar as high as $160 if an embargo on Iranian oil persists.

Tension has filled the Middle East as the European Union has placed an embargo on Iranian oil imports, which has resulted in Tehran repeatedly threatening to shut down the Strait of Hormuz.

The Strait is arguably the world’s most vital and strategic waterway, since it is the sole passageway for Gulf oil exports. Iran’s threats to shut down the Strait if it is not allowed to export its signature crude, have come with great attention.

“If the embargo on Iranian oil persists, or in case of a military move over the closure of the Strait of Hormuz, oil prices are expected to soar to around $150 to $160,” Kuwait Petroleum Corporation board member Ali al-Hajeri says.

But before panic at the pump begins, Herjeri says that such a price would not last very long. He believes that oil prices to return back to “normal levels” once the reasons for the rise disappear.

He says that the current price of between $100 and $105 a barrel is “fair and acceptable to producers and consumers.” Any price higher would be counterproductive to the global economy.

From Middle East Online, 

Crude prices were lower in Asian trade on Monday as concerns over the unresolved debt crisis in Greece outweighed worries about supply disruptions in the Middle East and Africa.

New York's main contract, West Texas Intermediate crude for delivery in March, was down 54 cents at $97.30 a barrel in the afternoon.

Brent North Sea crude for March delivery shed four cents to $114.54.