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IMF:Iran sanctions could lead to 30% hike in crude

Thursday, January 26, 2012

The International Monetary Fund says global crude oil prices could jump 30 percent as a result of US and European sanctions against Iran.

In a report released on Wednesday, the IMF said a halt of Iran’s oil exports to OECD economies without offsets from other sources could trigger a price increase of 20 to 30 percent.

The IMF says sanctions could lead to supply declines of around 1.5 million barrels per day from Iran.

It says that volume is comparable with the fall during the first oil shock in the 1970s and last year’s supply disruption from Libya.

The IMF warning comes as the West increases pressure on Iran over its nuclear program.

Earlier this week, the European Union slapped an embargo on Iranian oil.


Laaska News.