Coordination among member states of the Arab Gulf Cooperation Council (GCC) is very much important to deal with future hazards that might threaten oil supplies to states of the world, particularly in emergency conditions, Sheikh Fahad said in remarks to KUNA on Monday. 

He called for mapping out a contingency plan, in face of threats to disrupt flow of oil to the world markets. “The Hormuz strait is weak point for the Arab Gulf particularly at times of crises, especially with respect to the oil, commercial, food supplies, thus strategic alternative solutions must be found to ensure flow of the oil regularly.” Kuwait should ponder acquisition of floating oil storage tanks to be installed in some countries for sake of maintaining its oil exports in crises, said Sheikh Fahad, pointing out such a plan would ensure alternative means for crude exports and Kuwait’s strategic oil security. 

Such a plan ensures flexible transfer of the oil, meets the international market demand and averts crises that may send prices of the crude to high levels, he added. 

Sheikh Fahad further indicated that Kuwait should follow Saudi Arabia’s example in this regard, noting the kingdom secured “strategic alternatives far away from Hormuz, at its numerous sea ports in the east and west.” On forecast record hikes of the oil price if the United States attacks Syria, he expressed his opinion that the prices might soar to more than USD 250 per barrel. 

Oil prices are currently stable “but conditions may change if the war erupts and its scope expands in the region,” he warned, affirming that such a dire eventuality would certainly affect the oil supplies. 

He also noted that the war prospects may strengthen in case Syria tried to procrastinate and dodge its commitments to dismantle its arsenal of chemical arms, and this in turn would push the oil prices high.