Sputnik: In your view, why has the oil market reacted so sensitively to the announcement made by Netanyahu?
Phil Flynn: The concerns now are that there could be renewed sanctions on Iran. We see the tightest oil market in a generation, mainly because of strong global demand, and the potential loss of Iranian supplies is not going to be easily made up for.
Sputnik: Is it likely that the current gain in oil prices will be sustained and the price will go even higher?
Sputnik: Will additional sanctions on Iran impact the supply of Iranian oil to the global market?
Phil Flynn: China and India are the biggest importers of Iranian crude oil, and other countries like Turkey, too. Oil is a commodity and it’s not going to be just these countries, it’s going to be everybody on the globe. Prices go up because of a disruption in supplies and [the effects of this disruption] will be felt throughout the globe.
READ MORE: 'Mr. Trump Talks Too Much': Iran on Oil Embargo Extension
Sputnik: What countries are most likely to make up for the loss of Iranian oil supplies?
Phil Flynn: I think these will be the other OPEC countries. But to be honest with you, Russia, the US, maybe Saudi Arabia, have a lot of spare production capacity to fill that void. But I don’t think that Russia or Saudi Arabia will be in a hurry to do that. Let’s face it – they’ve been working together to raise the oil prices for the last year with this alliance between Russia and the OPEC, so I think they would sit back and watch the prices rise a little bit and not necessarily be in a hurry to make up for that loss of supply.
The views expressed in this article are solely those of the speaker and do not necessarily reflect the official position of Sputnik.