Rockwell Advisors: Morgan Stanley warns of possible price increase if Iran oil supply is interrupted.

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 10, 2011 -- Oil prices could climb “significantly higher” if supplies from Iran are interrupted following a United Nations report on the country’s nuclear plans, Morgan Stanley analysts have informed Rockwell Advisors.

“While shut-in Iranian production is certainly not our base case, we highlight the upside risk to our price forecasts if tensions flare to the point of conflict,” analysts including Hussein Allidina told Rockwell Advisors from New York recently.

The analysts say that it is unlikely that there will be a “significant supply disruption,” and that there will be “little lasting impact on crude prices.”

Iran produces 3.6 million barrels a day of oil, around 5% of the world’s total, the analysts informed us. Around 2 million barrels a day are presently exported to countries such as Japan, Korea and Italy.

In a recent report the International Atomic Energy Agency, based in Vienna, Austria, said that Iran had carried out “work on the development of an indigenous design of a nuclear weapon including the testing of components.”

Crude oil for December delivery rose $1.28, or 1.3 percent, to $96.80 a barrel on the New York Mercantile Exchange on November after news of the report surface, the highest settlement since July 28.

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