Wednesday, February 22, 2012

Bethel Finance: Oil price hits eight-month high on Iran-Israel war fears

www.bethelfinance.com
Vitol, the world’s largest independent oil trader, gave the stark warning about the risk of a record price spike after unveiling its annual results.

The Swiss-based trading house - which is privately owned - said it had notched up record revenues of $297bn for 2011, putting it far ahead of rivals such as Glencore and Trafigura. Vitol’s sales were up 44pc from $206bn last year on volumes of oil, carbon and gas trade of 457m tonnes, up from 399m tonnes in 2010. The company’s results - which do not include profit numbers - are just $78bn shy of BP’s annual revenues.

Ian Taylor, Vitol chief executive, said the likelihood of an Israeli air strike on Iran had increased and was likely to push oil prices to $150 a barrel.

“I used to think this would never happen but everyone you speak to says the Israelis will have a go at striking at Iranian nuclear sites,” he said.

“The day that happens, you have to believe the Iranians throw a few mines in the Strait of Hormuz and for a few hours at least, or maybe more, I cannot see a scenario where prices would not be at that sort of level [$150 a barrel].”

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