Global Partners Security Analyst Believes Iranian Sanctions Point to Continued Gains for Oil

FOR IMMEDIATE RELEASE
New York, New York, United States of America (Free-Press-Release.com) December 2, 2011 -- Oil jumped to almost $110 per barrel Friday as increasing doubts about oil heavyweight Iran and the widespread belief that the U.S. jobs report will be more favorable than initially expected outweighed concerns about the European debt crisis.

"These Iranian sanctions have the potential is to really push up the price of oil," said Elizabeth Carruthers, a commodities analyst at New York’s Global Partners Securities. “Even though Iran’s reaction to these increased sanctions isn’t certain, it seems apparent that investors will react on the assumption that oil flow will be curtailed. At a bare minimum, this is the sort of situation that solidifies oil’s current trading price, regardless of whether or not the economy recovers at the pace currently forecasted."

Carruthers continued, “The imposition of sanctions can’t take place overnight. But, if an increasingly unpredictable Iran senses an inevitable loss of income, there’s a very real chance that they’ll ‘take their ball and go home’ by turning off the flow of oil to the West.”

If Iran were to impose a western export ban, it’s quite likely that many countries would release a portion of their strategic reserves. Even so, initial predictions indicate that if Iran puts the brakes on their exports oil could rise by over $25 per barrel. “While there is no guarantee that Iran will stop exporting oil in response to the increased sanctions, the fact that the possibility exists is almost surely an indication that oil will, at least in the short-term, continue its rise,” concluded Carruthers.

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