Impact Of Iranian Oil

Do you think that the price of a barrel of oil on the world market will rise once Iranian trade sanctions are lifted and it re-enters the market on a grander scale ?

Will it be inflammatory / accelerate hostilities in the M. E. ?

I'm guessing 'Yes' would be the answer to both questions myself.

What do you folks think ?

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Permalink Reply by Joseph-Ohio on October 14, 2015 at 8:34pm
Also wondering who would be buying / who they would be selling to - primarily China or or just OPEC or any and all ?
Permalink Reply by Jon on October 15, 2015 at 7:04am
I think that's why we're ending the oil export ban.
Permalink Reply by Joseph-Ohio on October 15, 2015 at 9:38am
So you're saying we must want some of that $45.00 per barrel oil market ?

Make up the difference between $100.00 per barrel oil and $45.00 per barrel oil by increasing sales volume ?

Dependent on overhead / efficiency variables (sometimes) that doesn't work out too well (for some).
Permalink Reply by Joseph-Ohio on October 15, 2015 at 10:09am
BTW - just read that the I.E.A. says that the market won't see $100.00 per barrel oil until domestic (U.S.A) shale is in decline (2020).

That's not so good (IMHO).
Permalink Reply by Joseph-Ohio on October 15, 2015 at 3:51pm
Personally I'm not buying into the part about domestic shale oil production being in decline by year 2020 myself.

Seems to me at snail's pace rate we're going they won't even have enough infrastructure (to handle the production) in place by by 2020 !
Permalink Reply by cattlerancher on October 15, 2015 at 7:18am

I'm not so sure that Obama will sign off on the oil export ban.  He is certainly not a friend of the O/G industry. 

Permalink Reply by Joseph-Ohio on October 15, 2015 at 9:36am
If he doesn't he ought to be fired / impeached.

Industry experts are pretty adament / in favor of it (lifting the ban).

What makes him think he knows better than they I wonder ?

JMHO
Permalink Reply by Jim Litwinowicz on October 15, 2015 at 9:51am

Just the opposite. Iranian oil will bring down the Brent price substantially.  They have huge reserves and can get it out of the ground very cheaply.  The only question is how long will it take to get their production back up.

BTW, Almost all cars in Iran run on nat gas. They just export the oil. Which makes the smarter than us.

Lifting the export ban would help some what as there is a $5 difference in Brent vs WTI.  Allowing exports will allow the exporters to sell a bit higher.  But how much higher is unknown as our exports will cause the differential to drop....but no one knows how much.

Permalink Reply by Joseph-Ohio on October 15, 2015 at 10:14am
All cars run on NG in Iran.

That's what we ought to be doing too. Should have done it 1st.

From what I've read / heard they burn it off (here) to get at the oil.

Not so smart of us at all if you ask me.
Permalink Reply by Joseph-Ohio on October 15, 2015 at 10:18am
Yeah, but deep down in their heart of hearts they want money to build bombs so they can wage (watdayacallit) jihad warfare on Israel and us (U.S.A.) from what I've been reading.

From what I've read / seen on the news they're supposed to be able to lie and cheat and 'take infidels to market' from what I've read (we [the U.S.A. and our Allies] are supposed to be 'infidels' by their definition from what I've read also).

No ?
Permalink Reply by Jason Cooper on October 16, 2015 at 9:27am

I doubt that adding millions of barrels per day to an already saturated market will serve to raise prices.

Permalink Reply by Joseph-Ohio on October 16, 2015 at 9:45am
Of course I don't know for sure, but my guess would be whatever price the producers (OPEC including SA and Iran) would decide to sell their production for.

I would think they've got their hands on their own valves and make their own decisions about how much production they release to market considering what's bid.

Why wouldn't that be correct ?

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