• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 6 mins Rioting and Protesting
  • 2 hours Would bashing China solve all the problems of the United States
  • 53 mins WHY was George Floyd Murdered and Why Publicly
  • 3 hours Thugs in Trumpistan
  • 4 hours Model 3 cheaper to buy than BMW 3 series.
  • 10 hours Iran's first oil tanker has arrived near Venezuela
  • 5 hours Pompeo's Hong Kong
  • 3 hours So the President is on that Hydroxy
  • 1 hour Build Back Better is the Latest Globalist Plot
  • 14 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 2 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 6 hours Obamagate Is Not a Conspiracy Theory
  • 8 hours Michael Moore's Controversial "Planet of the Humans" Movie
Oil Market Could See Long Term Contango

Oil Market Could See Long Term Contango

The oil market could stay…

Deja Vu: OPEC's Recurring Oil Production Dilemma

Deja Vu: OPEC's Recurring Oil Production Dilemma

Saudi Arabia, OPEC’s largest producer…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Goldman: U.S.-Iran Standoff Is A Long-Term Threat To Oil Supply

While the Kurdistan-Iraq standoff is a risk to shorter-term oil production, the increased tensions between neighboring Iran and the U.S. are a longer-term and bigger threat to global oil supplies, according to Goldman Sachs.

On Friday, U.S. President Donald Trump said he was officially withdrawing his certification of Iranian compliance with the nuclear deal, in what is being billed as part of a tougher strategy on Iran. President Trump passed the nuclear deal back to Congress to review and amend the law.

“That is why I am directing my administration to work closely with Congress and our allies to address the deal’s many serious flaws so that the Iranian regime can never threaten the world with nuclear weapons,” President Trump said.

The tougher stance from the U.S. may lead to more sanctions and to a prolonged tension between the U.S. and Iran.

“In the case of Iran, there are likely no immediate impacts on oil flows and there remains high uncertainty on potential reintroduction of U.S. secondary sanctions. If they are, we expect that several hundred thousand barrels of Iranian exports would be immediately at risk,” Goldman Sachs said in a research note on Tuesday, as quoted by CNBC.

If no other countries support the U.S. push for more sanctions, Iran’s production is unlikely to drop by 1 million bpd, according to Goldman.

Related: Chinese EV Boom Could Crash Oil Prices

Jeff Brown, president of consultancy Facts Global Energy (FGE), said at the Reuters Global Commodities Summit last week that one potential upside for oil prices would be the U.S. imposing fresh sanctions on Iran.

“While the U.S. appear to be going alone on this, we have seen in the past that U.S. sanctions alone can be very effective,” Brown said at the Reuters summit.

“U.S. sanctions could cut off a lot of Iranian oil trade finance. Last time we saw this, it cut off 1 million bpd of supplies. I don’t think it’d be that big this time round, but it would still be significant,” Brown noted.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News