Trump’s Iran Deal Exit May Take Months To Play Out In Oil Markets

Investing.com – President Trump’s decision to quit the 2015 nuclear deal with Iran and re-impose economic sanctions gave oil prices an immediate lift but its
overall impact depends on a number of factors and may take months to play out.
The biggest question is how much Iranian oil will be knocked off the market. Analysts say it could be anywhere from 250,000 to 1 million barrels a day.
Another question is who other than U.S. producers will pick up the slack. Saudi Arabia and other OPEC members could also step in, but it is unlikely.
Joe McMonigle, senior energy analyst at Hedgeye Risk Management, says a lot of the supply concerns have already been priced into the market.
“But once it becomes clear there’s physical oil coming off the market you could see a bump up to over $80 a barrel,” for North Sea crude, he says.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.