Bloomberg News

Oil Prices to Climb After EU Sanctions on Iran, Al-Rai Reports

July 01, 2012

Oil prices may rise after European Union sanctions on Iran came into effect today, Kuwait-based Al- Rai reported, citing Kuwait Petroleum Corp. Chief Executive Officer Farouk al-Zanki.

The halt in Iranian crude oil exports to the EU may drive prices up to a range between $90 to $100, al-Zanki said, according to the newspaper. The market will be “monitored” to control the price trend which will be between $90 and $95 dollars a barrel, the newspaper quoted al-Zanki as saying.

Saudi, the largest producer in the Organization of Petroleum Exporting Countries, is ready to raise production and to compensate for the lack of supply, al-Zanki said, adding he doesn’t expect oil to fall to $80, according to the newspaper.

A price of about $100 a barrell is “appropriate and comfortable” for Kuwait and even helps with executing strategic projects, al-Zanki is quoted as saying.

To contact the reporter on this story: Dahlia Kholaif in Kuwait at dkholaif@bloomberg.net.

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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