Lower crude exports from Iran could trigger 30% spike in oil prices - IMF
By MICHAEL R. CRITTENDEN
A halt of Iran's oil exports to Organization for Economic Cooperation and Development (OECD) countries could trigger a 20%-30% spike in oil prices, an International Monetary Fund official said Thursday.
"The impact of an oil supply shock in the Middle East could be large if not compensated by a supply increase elsewhere," said Gerry Rice, director of external relations at the IMF.
Gas prices and potential supply issues in global oil markets is quickly becoming a hot-button topic both in US domestic politics and internationally as tensions between Iran and western nations intensifies.
Iran earlier this week said it would stop selling its crude oil to French and British companies, instead pledging to sell to new customers.
The move comes in the wake of US officials in recent months urging allies to cut purchases of crude from Iran as part of a broader sanctions regime.
The European Union last month said it would ban all purchases of oil from Iran for countries within the union, though that will not take full effect until later this year.
Dow Jones Newswires
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