Tuesday, February 28, 2012

Oil: Oppenheimer's Fadel Gheit Calls for $160-$170 Brent

From Yahoo's Daily Ticker:
Oil Prices Are Going “Much Higher”: Blame Iran…and Speculators, Gheit Says
Oil and gas futures dipped Monday but the relentless surge in energy prices is very likely to continue in the days and weeks ahead, according to Fadel Gheit, senior energy analyst at Oppenheimer.

In fact, Gheit believes oil prices could go "much higher" — with Brent crude surging into the $160-$170 per barrel range vs. around $124 currently — in the not too distant future because of ongoing tensions with Iran.
Such a surge would undoubtedly put further upward pressure on gasoline and other refined products.

A supply disruption in the Strait of Hormuz is a "nightmare scenario" and the situation with Iran is "coming to a head," he tells Henry in the accompanying video. Tensions between Iran and the U.S. and its allies have been rising in recent weeks over concerns about Iran's nuclear capabilities. On Friday, the International Atomic Agency reported Iran has increased its production of enriched uranium, the latest in a series of events that have alarmed Western policymakers, most notably in Israel, about Iran's capacity to build nuclear weapons....MORE, including video