Friday, July 11, 2008

OPEC WARNS AGAINST MILITARY CONFLICT WITH IRAN

International Herald Tribune The head of the Organization of Petroleum Exporting Countries warned that oil prices would see an "unlimited" increase in the case of a military conflict involving Iran, because the group's members would be unable to make up the lost production. "We really cannot replace Iran's production - it's not feasible to replace it," Abdalla Salem El-Badri, the OPEC secretary general, said during an interview.

Iran, the second-largest producing country in OPEC, after Saudi Arabia, produces about 4 million barrels of oil a day out of the daily worldwide production of close to 87 million barrels. . .

"The prices would go unlimited," Badri said during the interview, referring to the effect of a military conflict. "I can't give you a number." . . .

Badri, a former oil executive who has headed the oil industry in Libya and also served as deputy prime minister of that country, called for a peaceful solution. He also suggested that an additional military conflict in the Middle East, besides the ongoing conflict in Iraq, would be severe and long-lasting.

"If something happened there, nobody would be able to solve it," he said.

1 Comments:

At July 13, 2008 4:38 AM, Anonymous Flavian said...

This is why the US and Israel have not invaded before now. I can remember reading about Japan trying to reduce their reliance on Iranian oil last year when the last lot of sabre rattling was going on. The US is stretched and exhausted on Iran and can't afford to start another war. Isreal can try but they did not do too well against the Hezbollah.

 

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