A halt in Iraqi-Iranian oil seen as no peril for world

World petroleum stocks are so large that the total interruption of Iraqi-Iranian exports would hardly make a dent, a noted industry newsletter, The Lundberg Letter, says. If the world were deprived entirely of the 4 million-barrel-a-day exports from the two warring nations, it probably has more than a 25-month supply above the amount considered adequate before 1979. Even if the Persian Gulf's entire 17 million-barrel-a-day export were stopped, there would probably be a six-month cushion.

The letter says US refined oil prices will likely remain stable until companies solve their oversupply problems, which may not be until next summer. But it is only a matter of time before upward pressures raise prices again.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK