• 2 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 2 days Mexico Blames Brazil For Failing Auction
  • 2 days Norway Allows Eni To Restart Goliat Oil Field In Barents Sea
  • 2 days Malaysia Suggests Muslim Countries Stop Trading Oil In U.S. Dollars
  • 3 days Kinder Morgan Wins Appeal To Start Trans Mountain Work
  • 3 days Mexico Cancels Deepwater JV Tender Due To Lack Of Interest
  • 3 days Oil Drillers Give Cold Shoulder To Alaska Bidding Round
  • 3 days Budweiser Bets On Tesla To Replace Its Fleet
  • 3 days Forties Pipeline And Nearby Terminal Disrupted After Oil Leak
  • 3 days Major Nigerian Union Threatens Strike After Mass Firing Of New Members
  • 4 days China’s Sinopec Sues Venezuela’s PDVSA Over Unpaid Debts
  • 4 days Chevron Cuts Total 2018 Capex, Boosts U.S. Shale Investment
  • 4 days Shell Idles Six Nigerian Power Plants After Gas Shortage
  • 4 days London Firms To Visit Saudi Arabia As Battle For Aramco Listing Continues
  • 4 days East Timor Is Running Out of Oil
  • 4 days Withdrawal From OPEC Deal Could Take 6 Months To Negotiate
  • 4 days India’s Largest Refiner Looks To Ditch Oil In Favor Of Renewables
  • 4 days Protestors Shut Down A Minnesota Wells Fargo Over Oil Investments
  • 4 days U.S. Energy Secretary Discusses LNG Exports To Saudi Arabia
  • 5 days China’s CNOOC Spends Big In Panic Hoard of LNG
  • 5 days Asia May Return To Mid-East Crude As Mexican Supply Tightens
  • 5 days Enbridge Restarts Controversial Line 5 After Shutdown
  • 5 days South Sudan Stills Owes $1.3B Oil Payments To Sudan
  • 5 days Oil Prices Fall After API Reports Huge Build In Gasoline Inventories
  • 6 days Rosneft Takes On Massive Debt As US Sanctions Mount
  • 6 days Kinder Morgan Announces Further Trans Mountain Pipeline Delays
  • 6 days API Announces Voluntary Methane Reduction Program
  • 6 days Statoil Plans $6B Development At Huge Arctic Oil Field
  • 6 days South Sudan Hopes Higher Oil Prices Will Restore Ravaged Economy
  • 6 days China Launches New Gas Pipeline Amid Soaring Demand
  • 6 days Total’s $16B Ultra-Deepwater Project In Jeopardy
  • 6 days OPEC’s November Output Drops 300,000 Bpd
  • 6 days Exxon’s Beaumont Refinery To Remain Partially Offline
  • 6 days Engie To Ditch Natural Gas By 2050
  • 6 days Aberdeen University Launches World’s First Oil Decommissioning Simulator
  • 7 days China Orders Regions To ‘Regulate’ Surging Natural Gas Prices
  • 7 days Exxon Looks To Enter Egypt’s Upstream Oil And Gas
  • 7 days Tax Bill Supports Oil And Gas Industry, API President Says
  • 9 days Blackstone Teams Up With Brazilian Partner To Buy $6B Gas Pipeline
  • 9 days Tesla Faces New Sales Challenges In Germany
Alt Text

Saudi Oil Minister Hints At Post OPEC Deal Strategy

OPEC and its non-OPEC partners…

Alt Text

The Oil Information Cartel Is (Finally) Broken

The oil information cartel that…

Alt Text

Oil Prices Rise On Solid Chinese Demand

Oil prices rose on Friday…

Oil Prices Plunge 5% As Traders Fear A Wave Of Iranian Oil

Oil Prices Plunge 5% As Traders Fear A Wave Of Iranian Oil

WTI and Brent hit fresh lows on Friday over persistent fears of oversupply. The latest thing to drag down oil is the prospect of Iran quickly returning some significant volumes of oil to the market.

That is because “Implementation Day,” the day that Iran fulfills all necessary requirements stemming from the historic nuclear agreement reach last year, is expected imminently. U.S. Secretary of State said on Wednesday that the achievement would be reached “within the next coming days.” The IAEA is expected to issue a report as soon as today that will affirm Iran’s compliance. Related: Another $165 Million Deal Signed In This Emerging Oil Hotspot

That means the sanctions on Iran could be lifted as soon as next week, and as such, Iran could quickly bring back some oil production and exports. Iran has promised to ramp up oil exports by 500,000 barrels per day almost immediately. Iranian officials have also said that within a year of the removal of sanctions, it could bring back 1 million barrels per day.

At the same time, Iran has dialed back the ambition in recent weeks, saying that it will only produce as much as global demand justifies.

For now, oil markets are taking in the news and expecting more price pressure. WTI and Brent dropped nearly five percent during intraday trading on January 15.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Rick Brueckner on January 15 2016 said:
    Wait a minute!
    Is Iran going to be able to produce a barrel of oil for $30?
    I don't think so.
    So they start flooding the market with the same strategy the Saudis are using. They'll spend all their cash to produce $30-$29 a barrel oil that cost them a least $60 a barrel.
    May take both countries several years to run out of cash but is seems to be a failing strategy in the end.
  • Christian on January 15 2016 said:
    Isn't Iran's cost per barrel about $10? They can do ok selling at $30 if that's so.
  • Christian on January 15 2016 said:
    I think Iran can pump oil for $10/bbl. Should do ok selling at $30.
  • Adam on January 16 2016 said:
    Oil plunged this week because hedge funds shorted the life out of oil. You have to look at the reported positions every Friday.

    Hedge Fund short position rose to an all time high of 213.5M barrels of oil. They shorted 6M barrels of oil every day, which is equal to 2/3 of production of Saudia Arabia. It is equal to 3 times the produciton of Iran.

    This needs to be reported. 40% of all world storage is already sold due to this position. In the last 3 months, they have added over 127M barrels short to their position. It is absolutely ridiculous the headlines being made up to explain what is so simple.

    Wall Street Hedge funds shorted the life out of oil.

Leave a comment




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