Sanctions against Libya to lead oil prices to new record (VIDEO)
Trend commentator Aygun Badalova
Last week the European Union introduces additional sanctions against Libya's oil and gas sector.
During the meeting in Luxembourg foreign ministers of EU countries decided to tighten the sanctions against Qaddafi's regime, including another 26 oil and gas companies of North African country in the sanction list.
Some experts think that the sanctions will lead to the serious consequences for the world, and in particular for the European energy market. The others don't see the reason for any concern.
Nevertheless the one thing is obvious - the world oil prices which are very sensitive to the external factors, could reach the new record level.
The Libyan crisis has already been resulted in a big soar of oil prices which currently traded at the highest level since 2008 - above 120 dollars a barrel.
Libya is the major oil supplier to the Europe. The main importers of the Libyan oil are Italy, Germany, Spain and France.
The expert from the US Energy Security Analysis believes that it will be difficult for Europe to replace the Libyan light sweet. But Azerbaijan and Kazakhstan crude could be one substitute. There is a limited supply of alternative sources such as North Sea. So the Brent premium will remain strong, he believes.
According to the head of Iran's Central bank oil prices will rise above 150 dollars a barrel if the sanctions against the Islamic Republic are not removed.
Such scenario in its turn could seriously harm the global recovery and probably to plunge the world economy into recession.