General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIran Has a Little Surprise for Oil Market
by Grant SmithAnthony DipaolaJulian Lee
8:01 PM EDT March 24, 2015
(Bloomberg) -- Lifting oil sanctions on Iran could hit global markets long before the nation starts pumping more crude.
Thats because the OPEC member has been stockpiling oil onshore and in supertankers in the Persian Gulf, according to data compiled by Bloomberg. While estimates of the hoard by shipbrokers and government officials vary from as little as 7 million barrels to as much as 35 million, Barclays Plc and Societe Generale SA predict this crude would be first to be sold abroad if theres an agreement on Irans nuclear program.
The U.S. and five other world powers are scheduled to resume talks with Iran this week, offering relief from sanctions on oil exports, shipping and financial transactions if the Islamic Republic curtails its nuclear program and allows inspections to verify compliance. If a deal is reached, the Persian Gulf nation could add its stockpiles into an oversupplied oil market where prices have fallen more than 50 percent since June.
The first wave to look out for when these sanctions are removed is that stored oil coming back into the market, Miswin Mahesh, an analyst at Barclays in London, said by e-mail on March 23. Their ability to sell from storage will depend on whether shipping and insurance restrictions are also lifted.
more...
http://www.bloomberg.com/news/articles/2015-03-25/iran-has-a-little-surprise-for-oil-market-that-s-ready-to-ship
uponit7771
(90,364 posts)... fuel prices were more natural supply demand vs the Bush eyars
jwirr
(39,215 posts)mstinamotorcity2
(1,451 posts)mean the price of crude could drop even lower because there is an abundant supply??? Or that we will see inflationary pricing that will once again raise the price of crude??