• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 2 hours Sources confirm Trump to sign two new Executive orders.
  • 10 hours CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 4 hours In a Nutshell...
  • 1 hour No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 23 hours Why Wind is pitiful for most regions on earth
  • 10 hours A Real Reality Check on "Green Hydrogen"
  • 1 day Why Oil could hit $100
  • 10 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 1 day During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 10 hours Putin Paid Militants to Kill US Troops
  • 51 mins Where is Alberta, Canada headed?
  • 3 days Coronavirus hype biggest political hoax in history

Global Energy Advisory May 11th 2018

The U.S. withdrawal from the Iran nuclear deal is now a fact and the market has reacted as expected, namely with a knee-jerk reaction that saw Brent and WTI both jump by over 2 percent a day after President Trump made his announcement and continue climbing up.

The implications of the U.S. withdrawal are multi-faceted. That sanctions will return, cutting a portion of Iranian exports off global markets is only one facet. Another is that Trump’s decision sets U.S. Middle Eastern policy on a different course from the United States’ Western European allies, who are still committed to upholding the deal. A third, and perhaps the most serious, is that tensions in the Middle East will rise now.

With regard to oil prices and fundamentals, most analysts agree that the gravity of the effect U.S. sanctions against Iran will have is questionable. While some U.S. allies such as Japan and South Korea will likely opt not to anger their Big Brother and stop importing oil from Iran, others, such as China and India, will continue buying Iranian crude as they are not dependent on the United States for their national security.

Yet interestingly enough, South Korea is now looking for ways to continue importing Iranian crude, its economic ministry said a day after Trump’s announcement. Japan, for its part, has joined the European signatories in the Iran deal in condemning the U.S. President’s decision.

Meanwhile, Saudi Arabia has signaled it is ready…




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