oldBastard
Expert Member
Oil could reach $1 000 - Sunter
Johannesburg - Scenario planner and chairperson of the Anglo American chairperson's fund, Clem Sunter, said on Wednesday that the US starting a conflict with Iran was a "perfect storm" scenario that could usher in a $1 000/barrel oil price and lead the world from recession into something worse.
"If the US goes into Iran, expect oil prices to go to $500-$1 000 a barrel overnight," said Sunter.
"It could take R10 000 to fill your 4x4 - so life will change," he noted.
He said that this was now a very topical issue as the US had placed Iran on two weeks' notice and that these developments thus needed to be monitored very closely. He calls the current phase a "two week pipeline" during which Iran must climb down from their nuclear prgramme.
He said it was so important as 40% of the world's oil flows right past Iran.
"Keep it on your radar screen - this can decide the next years - a long-drop scenario like in the 30s and 40s," he said, noting that this was just a scenario that could happen should conditions change.
"We're moving into a tough world and we've all got to be prepared for that," said Sunter.
Sunter calls the potential military action a "perfect storm" coming on top of current recessionary global conditions brought about by the depressed US consumer.
So are we going to see a traffic jam on the Ben Schoeman highway where everybody is trying to walk to work?