AFP reported that oil prices could soar to as high as USD 160 per barrel if tension over an Iranian oil embargo persists or in the event of conflict.

Mr Ali al Hajeri board member of Kuwait Petroleum Corporation said that "If the embargo on Iranian oil persists, or in case of a military move over the closure of the Strait of Hormuz, oil prices are expected to soar to around USD 150 to USD 160."

Mr Hajeri said that such a price would not last long however and would return to normal levels once the reasons for the rise disappear. The European Union has slapped an embargo on Iranian oil imports and Tehran has repeatedly threatened to shut the Strait of Hormuz, a strategic waterway for Gulf oil exports, if it was not allowed to export its crude.

Mr Hajeri called the current price of between USD 100 to USD 105 fair and acceptable to producers and consumers and said any higher price would be counterproductive to the global economy.

Crude prices were lower in Asian trade as concerns over the unresolved debt crisis in Greece outweighed worries about supply disruptions in the Middle East and Africa. New York's main contract, West Texas Intermediate crude for delivery in March was down 54 cents at USD 97.30 per barrel in the afternoon.

(Sourced from AFP)