Iran issue pushing up oil prices: Peter McGuire, FX Global Capital

In a chat with ET Now, Peter McGuire, Chief Market Strategist, FX Global Capital, talks bout factors affecting crude oil prices.

ET Now: Given this Iran supply concern, how much of an issue do you believe that really is? You also have Goldman Sachs that says that it foresees crude oil priced at $127.5 per barrel by the end of the year. Do you concur with that?

Peter McGuire: There are a couple of quick things you need to consider. The geopolitical premium is adding to the price at the moment, the best part of 10, maybe 12% to the WTI and of course Brent.

If we did not have the issues in Iran, you would probably be sitting at 85 to 90, maybe a fraction higher.

I go along and I do concur with what Goldman is saying. The great driver is going to be supply constraints coming out of the Middle East.