• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 9 hours EU has already lost the Trump vs. EU Trade War
  • 1 day Science: Only correct if it fits the popular narrative
  • 21 hours Crazy Stories From Round The World
  • 1 day Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 23 hours Everything You Need To Know About Trump
  • 10 hours IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 3 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 1 day Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 5 hours Water, Trump, and Israel’s National Security
  • 20 hours Impeachment Nonsense
  • 12 hours ‘If it saves a life’: Power cut to 1.5 million Californians
  • 2 days What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days Who writes this stuff? "Crude Prices Swing Between Gains, Losses"

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…




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