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| Today: 09 February 2010 Time: 11:19 PM |
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| Oil prices may soar to 100 dpb in two years -- ranking Kuwaiti figure |
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| Power & Materials 7/7/2007 1:15:00 PM |
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By Ahmad Hajjaji
KUWAIT, July 7 (KUNA) -- Oil prices on the international market are
currently soaring to record levels, in reminiscence to the hikes of August
2006, partly as a result of high tension in the Middle East.
The prices jumped on Friday to 75.62 dollars per barrel, compared to USD 78.
65 pb in August last year.
Dr. Imad Al-Atigi, member of the Supreme Petroleum Council, told Kuwait
News Agency (KUNA) that the oil prices have been rising since 2003, reaching
USD 70 pb, before stabilizing in 2006.
But now the prices of oil, a strategic commodity of global value, appear on
a rising course anew and may soar to USD 100 pb by 2009.
Citing some factors that have caused the rising trend of the prices, he
mentioned regional unstable political conditions, failure to renovate rapidly
the oil infrastructure in Iraq and lack of major investments in this sector in
major exporting countries.
Prices nowadays cannot drop, considering the record growth rates in the
United States, Japan, China and India.
Dr. Talal Al-Bathali, assistant professor at the Faculty of Petroleum and
Engineering, attributed the rise of the prices to psychological factors such
as concern of possible cut in supplies or disruption in production.
"This fear is result of mounting tension between the United States of
America and Iran in addition to disturbances in Nigeria and Venezuela," he
said. He also indicated at widespread concern with regard of possible closure
of Hormuz Strait, through which the bulk of regional oil exports pass.
The global market would be in deep crisis in shadow of the bleak
eventuality; stoppage of Kuwait's daily exports, estimated at 2.5 million pb
and Iran's 3.5 million pb. Even the US cannot cope with a daily shortage of 1.
5 million bp for three months with dependence on its strategic reserves.
He forecast the oil price would remain below the level of 80-85 dpb during
the summer time before picking up above that level in the winter where it may
soar to 100 dpb. He played down significance of efforts to find alternative
sources of fuel. (end)
ah.aa.rk
KUNA 071315 Jul 07NNNN
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