Global oil price may hit $240 if Iran closes Hormuz: IHS

[mikebratcher69]

“If it [oil price] did hit $240 [a barrel], you're looking at about a doubling of where gas prices are now; and the US [gas price] is at $4 [a gallon]," said Jim Burkhard, managing director of the global oil group at IHS CERA, the firm's energy-research arm.

The expert stated that the impact would be so large as the global oil supplies are so tight.

“The world has only between 1.8 million and 2.5 million barrels per day of unused production capacity, down from 6.2 million in 2009. Tight inventories magnify the impact of any interruption in crude from nations around the Strait [of Hormuz],” Burkhard added.

http://www.presstv.ir/detail/233043.html