• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 2 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 9 mins Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 7 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 13 hours Judge Approves SEC Settlement With Tesla, Musk
  • 7 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 11 hours EU to Splash Billions on Battery Factories
  • 8 hours China Thirsty for Canadian Crude
  • 13 hours Gold price on a rise...
  • 8 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
  • 12 hours Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 12 hours Dow logs 830-point loss
  • 10 hours Iranian Sanctions - What Are The Facts?
Alt Text

Kazakhstan’s Fuel Crisis Is A Thing Of The Past

As whispers of oversupply begin…

Alt Text

Is The U.S. Using Force To Sell Its LNG To The World?

The United States has targeted…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Global Energy Advisory – 10th April 2015

 

Geopolitical Update

There is no need at this point for investors to fear a rapprochement with Iran in terms of what it might do to oil prices by adding more supply to the over-supply mix. As you likely are aware by now, a framework agreement was reached last week between Iran and world powers. There’s still a fair amount of road to travel to see sanctions lifted, though Iran wants them lifted immediately upon the implementation of a final deal. Even in that best-case scenario for Iran, it would take some time for the country to rally and ramp up production to the point that it would contribute to the already glutted oil market and further depress oil prices. It is important to reflect on history here: After the 1979 revolution and in the midst of a war with Iraq, Iranian oil production crashed hard, dropping from 6 million barrels per day to 1 million barrels per day. Recovering from this took more than a decade, and even then, the recovery was not complete. If sanctions are lifted immediately, this will not have anything close
to an immediate effect on the global oil market. It would be years before Iran could ramp up production to a level that would have any real effect.

In the meantime, the Saudis may shoot themselves in the foot with their unconstructive air strikes on Houthi targets in Yemen. Not only will air strikes fall short of rooting out the Houthis--who have taken over the capital city and who are being targeted because this…

To read the full article

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

RegisterLogin

Trending Discussions





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