• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 1 hour Boring! See Ya Clowns, And Have Fun In Germany
  • 34 mins China's Blueprint For Global Power
  • 44 mins Bloomberg: shale slowing. Third wave of shale coming.
  • 6 hours Crazy Stories From Round The World
  • 1 hour 5 Tweets That Change The World?
  • 4 hours the future
  • 28 mins ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 4 mins USA Carried Out Secret Cyber Strike On Iran In Wake Of Saudi Oil Attack
  • 7 mins Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 6 hours Climate Protesters Blocking Roads etc...
  • 21 mins Spain Is On The Edge...Clashes Between Catalonia And "Madrid"
  • 1 hour Leftists crying to make oil patch illegal friendly: 'Broken system' starves U.S. oil boom of immigrant workers: CONGRESS DO YOUR JOBS INSTEAD OF PANDERING!
Alt Text

Iran's President Vows Revenge For Oil Tanker Attack

Though details of Friday’s tanker…

Alt Text

Houthi Attacks: The Greatest Threat To Saudi Oil Production

The increasing missile, drone, and…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

New Iran Sanctions Could Send Oil Prices Higher

Oil prices are bound to remain low over the next couple of years, but two potential events could send them either higher than today’s levels or sinking into the $30s—new U.S. sanctions on Iran or OPEC failing to extend the production cut deal beyond March 2018, Jeff Brown, president of consultancy Facts Global Energy (FGE), told the Reuters Global Commodities Summit on Wednesday.

Even though the oil market now looks tighter than last year and earlier this year, inventories will likely stay high next year and in 2019, so there will be no big drivers for oil prices to materially rise, according to Brown.

However, one potential upside for the market would be the U.S. imposing fresh sanctions on Iran.

“While the U.S. appear to be going alone on this, we have seen in the past that U.S. sanctions alone can be very effective,” Brown said at the Reuters summit.

“U.S. sanctions could cut off a lot of Iranian oil trade finance. Last time we saw this, it cut off 1 million bpd of supplies. I don’t think it’d be that big this time round, but it would still be significant,” Brown noted.

Referring to the possible downside risks for oil prices, the FGE president, like almost all analysts, believes that OPEC should extend the production cuts to prevent a new surge in oversupply and a slide in the price of oil.

Related: Aggressive OPEC Pushes Oil Prices Up

Should OPEC decide not to extend the cuts, oil prices could easily drop into the $30s again, according to Brown.

FGE’s president is also part of the group of industry experts who think that oil prices may never return to $100, and expects prices in the long term to remain not much higher than $70 per barrel.

“You can’t have a balanced market at $100, when every single project will happen. We therefore have to get used to long-term prices not much above $60 or $70,” said Brown, who sees peak demand around 2030 due to the rise of EVs and improved fuel efficiency.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Jack Ma on October 12 2017 said:
    Oil is on the way to 200, and EBT card use will be expanded. IMHO

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play