Double Whammy: Oil could hit $200 under new sanctions

There is no doubt that the price of oil will increase drastically, says Iranian Oil Minister.

TEHRAN: World oil prices could soar to $200 per barrel if Iran’s petroleum sector is hit with new Western sanctions, Iranian Oil Minister Rostam Qasemi told Saturday’s edition of a news weekly, Aseman. “There is no doubt that the price of oil will increase drastically and the international markets will have to pay a heavy price,” Qasemi was quoted as saying. “One can’t give accurate predictions, but sanctions on Iran’s oil will drive up the price of oil to at least 200 dollar” per barrel, he said. Qasemi comments comes as the European Union was considering a possible EU embargo on Iranian oil imports. EU foreign ministers are to meet on the issue in a month’s time. Brent North Sea crude was at $107.02 per barrel in London, while New York’s main contract, light sweet West Texas Intermediate crude, was at $98.99 a barrel.

Published in The Express Tribune, January 1^st, 2012.