Sunday 31 May, 2020

US/Iran conflict could cause gas prices to surge in St Lucia

Managing Director of  Jn Marie and Sons Ltd, Everistus Jn Marie

Managing Director of Jn Marie and Sons Ltd, Everistus Jn Marie

Crude oil prices surged late Tuesday as Iran fired multiple missiles at air bases in Iraq housing US troops.

A possible retaliation from the US raises the possibility of oil supply disruptions. 

As tensions continue to boil over between the two countries, many are left to wonder what implications this can have on fuel prices in the Caribbean region.

Related Article

According to Everistus Jn Marie, Managing Director of Jn Marie and Sons Ltd, “The current tensions between Iran and the United States are always likely to have an effect on the price of crude oil and as we speak the price of crude oil is already hovering at around US$70 per barrel. As the situation intensifies, prices are likely to go up. The implications for us is like it’s always been, crude being a basic petroleum product…it will have implications for all other related petroleum products; gasoline, diesel, LPG’s, if that continues then we are going to feel the full effects in terms of seeing a major increase in the price of these products.”

With the recent discoveries and production of oil in Guyana, can the Caribbean region look to them to solve its oil woes in the midst of a possible World War III?

Jn Marie, who is also a former president of the Saint Lucia Petroleum Dealers Association said, “Guyana’s production of crude oil will make no difference in the situation of increasing fuel prices as crude oil is a global product which sells at a global price.”

The United States killed the high-profile commander of Iran's secretive Quds Force, Qasem Soleimani, with a drone strike in Iraq early Friday, which resulted in heightened tension between the US and Iran, which were already heightened by previous attacks on the US Embassy compound in Baghdad.

Get the latest local and international news straight to your mobile phone for free: