AP/Jae C. Hong
- US sanctions could cause a $ 50 pop to an already rallying oil market.
- But fears of a production shortage could move oil markets long-term.
The oil industry might not be able to produce enough oil to meet global demand in a few years’ time.
To be sure, much of the oil world is focused on the supply fears in the near-term. The outages in several OPEC nations, plus the tightening noose on Iran from the U.S. government, could lead to a supply shortfall towards the end of this year, a hole so big that Saudi Arabia could struggle to fill it, even if it burned through much of its spare capacity.See the rest of the story at Business Insider
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See Also:
- Oil could surge to $ 250 a barrel if Iran follows through with its threat to close a key choke point, analyst says
- An oil buyers club is threatening OPEC’s dominance
- Rising gas prices are taking a big chunk out of people’s disposable income
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