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31 Jan, 2012 16:47

Oil prices gamble

Trying to guess which way the oil price will go is like trying to pin the tail on the donkey.If you believe the Iranian’s, the price will rocket to $150 per barrel if the EU imposes sanctions.

However, the oil producers cartel OPEC thinks a fair price for a barrel of benchmark Brent crude is more like $100 rather than the current $112.  The head of OPEC Abdalla El-Badri says global oil markets are ‘very well supplied’. He thinks Iran is unlikely to go ahead with its threat to disrupt shipping in the Persian Gulf. The Saudi Oil Minister Ali Al-Naimi has promised his country will fill any deficit should that happen. David Ernsberger Global Director of Oil at Industry Researchers says $150 is just a psychological benchmark which most fear because this was the price oil reached before the crisis of 2008 “A lot of countries have been stockpiling crude oil, the market is positioning itself to withstand a supply shock so we can even be oversupplied in the short term,” he says.In an interview with RT Mr. Ernsberger explains where he thinks oil prices may go.