Yamani: Oil May Hit $100 A Barrel

The Telegraph (UK) ^ | 9-25-2002 | George Trefgarne

[blam]

Yamani: oil may hit $100 a barrel

By George Trefgarne, Economics Editor
(Filed: 25/09/2002)

Sheikh Yamani, the former head of Opec who terrorised the West with threats over oil supplies in the 1970s, returned to the fray yesterday when he warned that the price of crude could triple to $100 a barrel if there is a war against Iraq.

His comments contributed to another torrid day on financial markets, where shares tumbled. The FTSE 100 index closed down 68.3 at 3,671.1, a level unseen since December 1995.

In an interview in a German magazine DM Euro, Sheikh Yamani - who is now retired as Saudi oil minister but still close to the ruling family - said Saddam Hussein could fire chemical weapons at his neighbours if he was attacked.

"And if that's the case, you can expect a triple-digit oil price. It could rise to $100 if the flow of oil from Kuwait and Saudia Arabia is turned off."

The benchmark price of a barrel of crude rose 12 cents to $29.25 yesterday, still below the $40 a barrel it reached during the Gulf war. But analysts are increasingly concerned that it will continue to rise.

Last night Alan Greenspan, chairman of the US Federal Reserve, declined to come to the market's rescue. US interest rates were left on hold at 1.75 per cent.

[kylaka]

Life sometimes requires choices. If I had to choose between Wall Street being radioactive for the next fifty years, or paying $3.50 a gallon for gasoline, I'll pay extra for gas for the next two years.

[Amerigomag]

Yeah and Algore would have been a better president.

The sheikh had obviously been drinking too much oil before his interview.

[SEGUET]

"The sheikh had obviously been drinking too much oil before his interview."

Two days after the first shot is fired oil will be at $41.00/bbl

[goldstategop]

$100 a barrel? I doubt it'll climb that high in the event of a war. Even Algore didn't cite it in his "A War's No Good For Uncle Sam" speech last night.

[NEWwoman]

And Daschle and the rats block us from drilling in Alaska. Hope this comes back to haunt them.

[Enterprise]

Hey Sheik YaMoney - iffin oil gets to 100 a barrel we're gonna come over there and Sheik YaBooty!

[teresat]

Good thing I already prepaid for my home heating oil for the next year!

[PhiKapMom]

And Daschle and the rats block us from drilling in Alaska. Hope this comes back to haunt them.

Absolutely correct!

[sinkspur]

Two days after the first shot is fired oil will be at $41.00/bbl

And two days later, after the hapless Republican Guard starts surrendering and pointing out Baathist hiding places, oil will be back down to 24.00.

[TheRedSoxWinThePennant]

they can charge whatever they want unfortunately for them the worlds largest consumer for oil will soon take control of a vast supply and not need their 100 dollar a barrel oil but hey yemen maybe brazil or japan will pay for it

[section9]

The price of oil will spike at the opening bell of the conflict, but then the Russians, being Russians, will pump like crazy to make a killing while they can. Oil will go back down into the twenties. Take that to the bank.

Be Seeing You,

Chris

[mhking]

ANWR, here we come!

[Radioactive]

I doubt that oil will hit 100 bucks a barrel. More terrorist rhetoric from a fool.

Sounds as if he wants to rile up the mASSES in the US into an anti war ferver so that his buddy Sadam will remain in power. After all, who wants to pay $5.00 a gallon for gas?

When the US takes over the oil fields in Iraq/Iran, watch the price of oil drop like a rock.

[mathurine]

For a hundred dollars a barrel it would be worth mounting an expedition and conquering some mohammedan sultanate with oil underground-- and putting them underground while bringing the oil up for export. Hell, even for a dollar a barrel that's a plan worthy of a little consideration. Mo has got to go; might as well go for dough.

[RicocheT]

Since all foreigners accuse the USA of being the modern-day Roman Empire, let's take a page from the history book. When a client kingdom becomes troublesome, send in the legions and make it a direct ruled dependency.

[Always A Marine]

And two days later... oil will be back down to 24.00.

Or lower, as the true market price is probably somewhere around $20. Anybody who's long on oil is praying for war, and will be looking to get out as soon as the price spikes. The correction will be swift and brutal, as short sellers will rule the day.

[Free the USA]

Index Bump

[Enterprise]

Well, I'm hardly an advocate of colonialism - BUT, I think we have good reason to be weary when we have developed a commodity which hugely enriches the Saudi's - who then take some of that money and give it to terrorists who kill our citizens. I wouldn't mind an ultimatum here at all!

[SEGUET]

"And Daschle and the rats block us from drilling in Alaska. Hope this comes back to haunt them."

That had much more to do with Canada/Nafta and the teamsters than it did the "RATS"