Oil Price To Be $300 Per Barrel If Iran And Saudi Arabia Go Into War – Analysts

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Oil Price To Be $300 Per Barrel If Iran And Saudi Arabia Go Into War - Analysts

On November 15, Mikhail Mashchenko, an analyst at the eToro social network, told the Russian RT network  that he expect the price of an oil barrel to raise up to 300$ in case of the Saudi-Iranian war.

“We can expect a panic rise in oil price to $150-$200 on the first day of the conflict… If Saudis and Iran attack each other’s oil facilities, crude prices can skyrocket to $300,” Mashchenko said.

According to RT’s report, Ivan Karyakin, an investment analyst at Global FX said that the global market could survive a day or two of conflict between Iran and Saudi Arabia. However, if the conflict continues for more than a week, the oil price will raise to over 200$.

Karyakin argued that the US, China, Japan and the European Union will be the most affected by such an increase in the oil prices, as the countries are the main importers of oil.

“In the event of war, markets may lose about 20 percent of the world supply. First of all, of course, the largest importers will be affected. These include the US, China, Japan, as well as the Eurozone, in fact, the main locomotives of the world economy,” Karyakin said.

Petr Pushkarev, Chief Analyst at TeleTrade, told RT that the relationships between Iran and Saudi Arabia have seen worst times. Pushkarev also stressed that a war is not in the interest of Iran or Saudi Arbia.

“For the coming years, Saudi Arabia itself is too busy with technological and innovative projects to replace the lost oil revenues. They are not at all ready for full-scale armed conflicts with their neighbors right now, which would be very costly, and very inappropriate at the time when Crown Prince Mohammed Bin Salman is intensely concentrating power around himself. Perhaps the presence of an external enemy like Iran can suit his purpose, but only in the mediated conflict on the territory of Yemen,” Pushkarev said.

Just as Pushkarev said, while Saudi Arabia and Iran are more than willing to carry out proxy wars against each other in others countries like Yemen, the two countries will likely never engage in a direct armed conflict against each other.

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  • Solomon Krupacek

    Oil Price To Be $300 Per Barrel If Iran And Saudi Arabia Go Into War

    stupid analyst

  • Jonathan Cohen

    I’m invested in oil futures as is abortion rights defending Russia, so GO AT IT SAUDIS AND IRAN! MAKE ME RICH!

  • Rodger

    With solar power now being close to price competitive that won’t ever happen again. Ofc it could be $300 per barrel very easily if the dollar inflates but I don’t think that’s what they mean.

    • Brother Ma

      Since when is solar price competitive wirh oil?

      • Rodger

        “LCOE of solar thermal power with energy storage which can operate round the clock on demand, has fallen to AU$78/MWh (US$61/MWh) in August 2017” in comparison for coal it was AU$84-95/MWh in 2012. And it will only get cheaper. China has vast deserts where they can set up these facilities without any harm and because of the high altitude, low wind and low wages it will be much cheaper there still. They can turn their plateaus (Tibet) into huge hydrogen producing factories and probably will. In 10-20 years China won’t need to import any oil or gas.
        https://en.wikipedia.org/wiki/Cost_of_electricity_by_source#Solar_thermal

        • Brother Ma

          I stand corrected. Thanks Rodger.

          • Rodger

            For obvious reasons this isn’t shouted from the roof tops but I’m sure the oil companies and countries like Saudi Arabia know. Why do you think the Saudis now want to sell (part of) their reserves? They know it’s value will go down further still.

  • Blucross

    Buy it from Texas…….