IMF: halt in Iran oil could push crude up 30 percent

[xchrom]

http://www.reuters.com/article/2012/01/25/us-imf-oil-iran-idUSTRE80O1LH20120125

(Reuters) - Global crude prices could rise 20 to 30 percent if Iran halts oil exports as a result of U.S. and European Union sanctions, the International Monetary Fund said on Wednesday.

In its first public comment on a possible Iranian oil supply disruption, the IMF said financial sanctions against Tehran may be "tantamount to an oil embargo" and would imply supply declines of about 1.5 million barrels per day from the world's fifth-largest oil producer.

That volume of supply disruption would be comparable to losses in output from Libya last year due to civil war that pushed oil prices over $100 a barrel.

The IMF highlighted the risks in a note to deputies from G20 countries who met in Mexico City last week.

[Skink]

1. Europe should reconsider and buy Iranian oil

Otherwise it will just end up on tthe black market.

[DCKit]

2. Isn't that the whole point?

Oil at $100 doesn't pay enough.

[msongs]

3. yep. American policy serving to increase oil $ - mission accomplished nt