New Iran Sanctions Could Send Oil Prices Higher

12 Oct 2017   Iran

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 […]

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