Iran warns oil could reach $200

[Ming]

Iran warns oil could reach $200 on sanctions
Thu Aug 3, 2006 10:59am ET



CARACAS, Venezuela (Reuters) - Global oil prices could hit $200 per barrel if the United States pursues international sanctions against Iran, an Iranian official said on Thursday, although analysts passed the comment off as saber rattling.

Iran's Foreign Relations Vice Minister Manuchehr Mohammadi told Venezuelan state television, "The first consequence of these sanctions would be an increase in the price of oil to around $200 per barrel."

The statement comes after the United Nations on Monday demanded that Iran suspend all nuclear development within a month or face the threat of sanctions. Iran responded that it had a sovereign right to nuclear development.

"Clearly Iran does not want to have sanctions imposed, so they want to convey the idea that the cost of these sanctions would be incredibly high," said Tim Evans, an Energy Analyst with Citigroup Futures Research.

"While we can't rule out $200 oil, I think we can assign it a rather low probability," he said.

Markets appeared to shrug off the comment, with U.S. crude oil falling $1.01 to $74.80 on signs that Tropical Storm Chris would not become a hurricane.

Tension over Iran's nuclear ambitions, which has rattled oil markets in recent weeks, has been overshadowed by the bloody conflict in Lebanon.

"It serves (Iran's) interests to create this kind of concern in the world community about the price of oil," said Mark Routt, a senior analyst with Energy Security Analysis Inc. "But there are elements to suggest it might not reach that level."

He said high prices have lead to an increase in non-OPEC production and turned once prohibitively expensive projects like Canadian tar sands into profitable ventures.

At the same time, Routt said, product demand has been dampened by alternative fuel products like biodiesel and ethanol.

Source: http://today.reuters.com/news/newsar...src=rss&rpc=22

[ronus20]

How much gasoline can be made from a barrel of crude oil? I want to get a better relation as to these costs.

[MrMax]

**********************!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[bigplayrayr]

They want a nuke. We should give them a couple nukes.

[bouda]

Originally Posted by bigplayrayr

They want a nuke. We should give them a couple nukes.

I agree. Damn ****************************s have us by the balls.

[FoMoCo Fan]

Humm, not a good time to be selling SUVs.

[dav305z]

This is why we need energy independence at all costs. You don't want to depend on these guys for our cactus juice supplies, let alone oil. They're using their power to try and drag the enitre world into war. Look at them, they're fueling sectarian violence in Iraq, arming Hizbollah, and all the while, working to get a nuclear bomb.

In the Civil War they say King Corn defeated King Cotton. Let's see it hand a crushing defeat to King Oil.

[lytmup]

This is what you get when the current administration ignored the Iran problem to go chasing snipe in Iraq.

What do you do now? They do have us by the short and curlies. You think imposing sanctions would effect the price of oil, just try "giving them nukes" and see what happens then.

[jbartley]

well you've got my vote for turning Iran into the worlds biggest radioactive parking lot...

[jbartley]

Originally Posted by dav305z

This is why we need energy independence at all costs. You don't want to depend on these guys for our cactus juice supplies, let alone oil. They're using their power to try and drag the enitre world into war. Look at them, they're fueling sectarian violence in Iraq, arming Hizbollah, and all the while, working to get a nuclear bomb.

In the Civil War they say King Corn defeated King Cotton. Let's see it hand a crushing defeat to King Oil.

All that with our (not the US, but russia/china and the worlds) money

[Steel4ring]

Very doubtful. Just more anti-American babble. You will note the storyline is out of Venezuela. Hugo Chavez and his buddies in Iran are just doing a little sabre rattling to help spike the markets a few dollars.

Facts are that China and India and the rate of growth they have in oil use is having more effect on our oil prices than the same wackos that have been running the Middle East for the last 50 years.

OPEC even acknowledged this week that they have little control over oil prices. Also, not a drop of Iranian oil is refined in the US. My guess is $100-$200 a barrel oil would hurt them as badily as it would hurt us. Nothing like a worldwide recession to slow the use of their product.

[Havasavana]

It's all relative. I heard Chavez of Venezuela say awhile back that the upper range of oil price would be around infinity. So we can live with $200.

There was an article in the WSJ yesterday about output falling from Mexico's biggest oil field. Sounded pretty serious:

---
Output at Cantarell oil field -- responsible for about six of every 10 barrels Mexico produces -- fell to 1.74 million barrels a day in June from 1.92 barrels in January, according to figures released by Mexico's Energy Ministry. That compares with the official prediction by Petróleos Mexicanos, the state oil company, that production would decline to a daily average of 1.9 million during 2006.

The data show that Cantarell, the world's second-biggest field after Ghawar in Saudi Arabia, is living up to what is known within the state oil apparatus as a worst-case scenario, detailed in an internal oil-company report that suggested earlier this year the field's output could fall by nearly 75% by the end of 2008.

Senior officials at Pemex, as the state oil company is known, say such dire predictions aren't likely to bear out. The company has undertaken a range of new measures to slow declines at Cantarell and extract harder-to-get crude. Some of these techniques take many months to implement and therefore aren't reflected in the June data, they say.
---

[Yikes]

threats like that is begging for a bombing.

Well, we may not have invated Iraq for the oil...seeing as how we seem to be occupying a country that is full of crude, I don't see why we are not benefiting from this.

[Bornfromparents]

Iran could try push that oil will cost x amout but they are not the entire
industry and if I'm not mistaken we the U.S. could have tapped or own
oil reserves meaning Alaska or out west with shale. But what is worse
possible envirormental problem (not for sure) or be tied by the gonads
and have every little whim the world has, mess with the price of gas.
Our contry is not only losing jobs but we are just a consumer nation
on our way to having no viable products and importing everything
with everybody and there special interest. We should have the interest
of all who live here on our minds thats the way we grow otherwise
there will only be rich and poor, no middle class

[Mr. Burns]

now lets all go out and buy a couple of hummers, on me.

seriously, if the price of oil goes up any more, GM is screwed. so far the GMT900s have had all the hype regarding a GM turnaround. mpg isnt a GM trait.

all these mideast problems come back to the US itself, and its budding in for a century. The iranians/hizbulla/palestineans don't hate the west and isreal because they're jealous, but rather they seek revenge for all the suffering they and their families have had to deal with because of the west and isreal. until this is understood, the crisis there will not be solved, but rather intensified. as more are killed, more will seek revenge= more crisis=higher oil prices= higher gas prices= GM

if that was too off topic then delete it.