Iraqi expert: in case of a military action against Iraq, oil prices will soar to 40 dollars per barrel

Oil prices will increase to 40 dollars per barrel in the event of a military action against Iraq, said Shamhi Faraj of the Iraqi Oil Ministry in an interview with the Iraqi newspaper Uruk on Thursday.

A military operation against Iraq may upset oil supplies not only from Iraq but all states in the Persian Gulf area, which account for a third of the world oil output.

Simultaneously, in case of a military action, "Iraq will not end the production and export of oil, provided production and transportation facilities are not destroyed." In 10-20 years to come, the demand for oil in the United States and Europe will increase by over 70 percent from the present level, believes the Iraqi expert. In his opinion, above all, Iraq and other countries in the Persian Gulf can meet this demand.

After Saudi Arabia, Iraq is the second country in the world in terms of its oil reserves, estimated at 115 billion barrels.