Oil prices likely to rise to $90 after US sanctions take effect: senior analyst

TEHRAN, Aug. 07 (MNA) – A chief energy analyst told the CNBC Mon. that the oil prices will likely rise to $90 per barrel after the US sanctions against Iran’s oil sales take effect in November.

"As we go more towards (the fourth quarter) … that's when we really see the risk of prices going well into the 80s and potentially even into the 90s but very critical is how much Iranian production we lose," Amrita Sen, chief oil analyst at Energy Aspects, told CNBC on Monday, according to Russia Today (RT).

"A lot of people think China can just buy all of the Iranian oil but they came out and said: 'Yes, we may not reduce but we are not going to increase our intake either.' So, you could see a significant crunch in terms of lost supplies into the market and then that obviously means higher prices," the analyst added.

The new round of US unilateral sanctions against Iran after its unlawful withdrawal from the nuclear deal back in May will take effect as of today, while harsher sanctions targeting Iran oil revenues are expected to return in early November, causing a sharp decrease in global oil supplies.

Oil analysts have so far warned against the backlash of the US attempts to Iran oil’s removal from the global markets, expecting a spike in oil prices.

KI/PR

News Code 136490

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