SHIPPING CEO: Iran Could Send Oil To $440/Barrel

TBI ^ | 3-5-2012 | Gus Lubin

[blam]

SHIPPING CEO: Iran Could Send Oil To $440/Barrel

Gus Lubin
March 5, 2012

US Navy

The scariest Iran scenario yet comes from Bob Bandos, CEO of marine logistics and services company GAC North America.

Bandos tells Pierre Bertrand of the International Business Times:

[T]ankers can haul 1.8 million barrels of oil a day through the strait. If that supply is choked off, the effect would be similar to the fuel shortages of the 1970s - but more extreme, Bandos said.

"That would be nothing compared to this," Bandos said, who added the shortage would be global.

If the 1973 embargo experience repeats itself, the price of a barrel of oil could soar to $440 a barrel.

This scenario is more bearish than we've heard from most banks. Societe Generale, for instance, said oil could rise to $200 were the Strait closed. Of course the $440 figure was picked up by the pro-Iranian Tehran Times (via @DougKass).

[blam]

"For extra credit ... “and it’s on the shore of the pond.”

Ding, ding, ding! Extra credit awarded...a man who knows willows.

[DuncanWaring]

It’s enough to make me weep.

[blam]

I have 10 (ten) working chain-saws that I bought at yard sales two I paid $5.00 for and all others less...probably $3.25 average for the 10. I'll barter them when TSHTF.
Oh yea...I bought 8 brand new chains (for the saws) for $0.50 each...unbelieveable.
Also, I have about 30 cases of canning jars...$0.10 per jar. Canning pots, etc, etc.

So....

[SunkenCiv]

Wow, that’s a pretty high price prediction.

At $200 a barrel, Obama will order all offshore drilling stopped in US territory.

At $300 a barrel, Obama will order all exploratory drilling stopped on land.

At $400 a barrel (that’s not quite $10 a gallon for the crude, exclusive of refining and transporation losses), Obama will order all shale, heavy crude, and coal mining stopped in the US.