• 4 minutes Why Trump will win the wall fight
  • 7 minutes Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 9 hours Itt looks like natural gas may be at its lowest price ever.
  • 11 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 4 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 11 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 1 day AI Will Eliminate Call Center Jobs
  • 1 day Oil imports by countries
  • 14 hours US-backed coup in Venezuela not so smooth
  • 8 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day NZ Oil, Gas Ban Could Cost $30 Bln
  • 1 day Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day Solar and Wind Will Not "Save" the Climate
  • 13 hours Some Good News on Climate Change Maybe
  • 16 hours Europe Adds Saudi Arabia to Dirty-Money Blacklist

Global Energy Advisory May 11th 2018

Iran

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…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



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