• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 5 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 4 hours Itt looks like natural gas may be at its lowest price ever.
  • 5 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 8 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 4 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 3 hours Saudi A to Splash $100 Bln on India
  • 6 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 21 hours students walk out of school in protest of climate change
  • 1 day North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 1 day Some Good News on Climate Change Maybe
  • 1 day America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 19 hours Mineral rights owners,

Iran Back in the Game?

Bottom Line: The UK is close to making a thaw between Iran and the West a tangible reality by considering allowing BP to resume work with Iran, and Europe is eyeing this potential Iranian natural gas hungrily. Things are about to change for global energy.  

Analysis: Crude oil for November delivery fell on Monday by more than $1 over the previous week, continuing the reduction in anxiety over a potential US strike on Syria, and the overwhelming sense of calm that has come with US and European flirtations with the new Iranian president, which in turn has removed anxiety over perceived threats to the Strait of Hormuz from Iran.

For the UK, sanctions that have suspended operations at the Rhum natural gas field in the North Sea since 2010 have kept the country from at least 5% of its natural gas output, and a thaw with Iran would be a blessing. This joint venture with the National Iranian Oil Co. could now be revived.

Most importantly, US and European sanctions on Iran run contradictory to their shared goal of reducing Europe’s dependence on Russian gas. For this reason, there have been a number of exemptions to sanctions for Iranian-backed energy projects—most notably BP’s giant Shah Deniz gas field in Azerbaijan (10% owned by Iran). This was a strategic move to give Europe some alternative to Russian gas, and there should be more soon.  

Also of note in this atmosphere of thaw is an incident in Iran in which the clerical…

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