Yamani: oil may hit $100 a barrel

News.telegraph.co.uk ^ | (Filed: 25/09/2002) | By George Trefgarne, Economics Editor

[dgallo51]

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.

17 September 2002: Ousting Saddam 'would be good business' 7 September 2002: Oil price jumps over fears of new conflict 15 October 2000: This time the West can survive an oil embargo External links     FTSE   Organisation of the Petroleum Exporting Countries   DM Euro [in German] © Copyright of Telegraph Group Limited 2002. Terms & Conditions of reading. Commercial information.   Privacy Policy.

[dgallo51]

A small price to pay to be rid of this butcher once and for all!

[Vidalia]

OK, this one is for Sheikyubouti (sp)...

[GaryMontana]

Another argument as to why we need to take over the Iraqi and Saudi oil fields.

[sheik yerbouty]

Take up the Saudis' burden
And stamp on the jihadist weeds
We'll kick their ass
And take their gas
And pump just what we need!

[danmar]

...bullshit, this little sheik does not realised that the BIGGEST oil producer is Venezuela, not the rag heads shiiitedom in the Arabic peninsula.
Furthermore ol'Russia is back in play delivering more oil than all those OPEC wannabes.
Russia allready said that it has no interest in controlling oil prices thru the OPEC, so I guess them rag heads are bent out of shape of loosing control of the oil market!

BTW Chevron, Exxon have allready deals with Rusians for the Caspian Oil lined up as we speak!

[KeyWest]

Right on Otto. OPEC has much less control over oil prices than at any time in their history. The oil embargo was effective because there were no other large producers, but now there are many and they are not tied to OPEC. Plus, they have demonstrated that when they withhold oil, some in OPEC still export below the radar, so prices do not rise much. Finally, they cannot afford it. Most OPEC countries, including Saudi Arabia, are in debt or on the edge and need to keep the flow going to keep from going under. OPEC is a minimal threat.

[fone]

Mexico has increased production also, has it not?