The Impact of Mideast Conflict on Oil Prices

Despite the recent Mideast conflict between Hamas and Israel, oil prices are unlikely to surpass $100 a barrel, according to veteran strategist Ed Morse. He believes that even if the war escalates and draws in Iran, there is still around 4.5 to 5 million barrels a day of spare capacity in the world that can be brought to the market. Another energy analyst, Pavel Molchanov, also thinks it is highly unlikely that Iran will engage in a war with Israel. While Molchanov predicts oil reaching $100 a barrel within six months, the immediate threat of a significant price spike from the Mideast conflict seems unlikely.