With the current crisis in Iraq, crude oil prices are seeing a spike after being stable for a long while. Adi Karev, global head, oil and gas, for Deloitte Touche Tohmatsu, the New York-headquartered consultancy services network, says production disruption could hit the market badly. Edited excerpts of a talk with Jyoti Mukul:Oil prices were around $100 a barrel and the industry had become comfortable with it. With the Iraq crisis, what impact do you see on global crude oil prices and for how long?
The price has been relatively stable, hovering around $100 but it also reached $95 and $108 in that period. Right now, the high price of crude is a market-driven reaction -- the producing fields are in the far south or east of Iraq and the rebels are reported to be fighting in the north or west. So, there is no production impact yet. But if the fighting escalates and there is impact on production, the price impact will be severe. A production disruption will have a lasting impact.
With the changed relationship between Russia and the West, do you see any change in the US policy on gas exports?
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