Wall Street Reacts To The Lifting Of Iran Oil Sanctions
As was triumphantly announced over the weekend by both parties (making one wonder who actually benefited), after years of U.S. sanctions, Iran is now free to export as much of its oil as it wants after the International Atomic Energy Agency said the country had curbed its ability to develop a nuclear weapon leads to lifting of international sanctions. And while the end of sanctions also opens the door to foreign investors into country’s oil sector, most importantly it allows the country to flood the world with its oil. As a result the first thing the Iran oil ministry did today was to issue a notification order to boost oil production by 500k b/d.
Below, courtesy of Bloomberg, is a summary of the world's, and Wall Street's reactions, to the lifting of the Iran oil embargo.
IRAN SAYS:
- Iran beginning efforts to boost oil production, exports after removal of sanctions; targets increase in shipments of 500k b/d w/in mos.: Amir Hossein Zamaninia, deputy oil minister for commerce and international affairs
- Iran already selling more oil after sanctions lifted; ~1,000 lines of credit have been opened for banks, says President Hassan Rouhani
INTERNATIONAL RESPONSE:
- Iran deal paves way to closer energy cooperation w/ EU, will send 1st technical assessment mission on energy to Iran at the beginning of Feb., says EU Energy Commissioner Miguel Arias
- Potential areas for cooperation incl. nuclear energy, oil, gas, renewables, energy efficiency, electricity market
- Israel will monitor Iran for nuclear deal violations, says PM Benjamin Netanyahu
FOREIGN INVESTORS:
- Shell interested in developing Iran’s “energy potential,” monitoring developments w/ regard to settling outstanding debt to NICO “as soon as we are lawfully able to do so”
- Shell denies executives currently in Tehran for mtgs
- ABN Amro says Shell, Iran relationship “has been very good,” puts co. in position to be “prime partner” for Iran with lifting of sanctions; lifting of sanctions has neutral overall impact
TANKER NEWS:
- Iran oil tankers set sail under Lloyds insurance, Shana cites Ali-Akbar Safaei, MD of National Iranian Tanker Co.
- Iran oil tanker fleet yet to signal Europe as sanctions lifted: Bloomberg ship tracking
- Clarksons Platou says Iran return to mkts may boost VLCC rates by $10k-$15k/d; boosting exports to 1m b/d could lift fleet utilization of ~90% by 1 ppt
ANALYST VIEWS:
Morgan Stanley (analysts incl. Adam Longson)
- Iran oil output to rise ~600k b/d in 1H16, longer-term picture murkier given uncertain investment environment
Commerzbank head of commodities research Eugen Weinberg
- Prices to probably show “knee-jerk” reaction, dropping Monday before recovering to >$30/bbl later in wk
- “There is a real oversupply in the market, but I think that’s already reflected correctly in the price”
Qamar Energy CEO Robin Mills
- Iran oil “will have an immediate impact in the spot market”; “putting oil in the market is going to push it down”
- Iran can boost production, sales of ~600k b/d w/in 6 mos; can add 600k-800k b/d of output this yr
IHS analyst Victor Shum
- “Aggressive” increase in Iran crude exports could lead to “open market-share battle” w/ Saudi Arabia
- Nomura Holdings analyst Gordon Kwan
- Oil may drop to $25/bbl Monday on Iran sanctions relief as “additional crude shipments have the potential to further depress prices”
JBC Energy
- Iran crude exports seen increasing 450k b/d over 2016, w/ 185k b/d coming from floating storage; production will rise “by only 255k b/d over 2016 to 3.2m b/d”
- Expects “substantial increase” in exports in short term as Iran ships crude stored on tankers; does not think this sustainable; sees 14m bbl of crude, 35m bbl of condensate stored in tankers
Source: Bloomberg
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and the price of oil goes up?
30.34$
The Middle Eastern Wars SITREP Syria Russia Iraq ISIS January 18th, 2016 by Rambo
http://thesaker.is/the-middle-eastern-wars-sitrep-syria-russia-iraq-isis/
What, no peace in our time hopium?
BTFD.
The Fed is.
Choose to win.
Yes Neo, it seems confusing at first...............
Paper oil is up. The guys buying the real stuff are paying less.
paper gold, paper woses https://www.youtube.com/watch?v=-3fqJkTeDNU
only imitations
500k barrels a day?....Eating at the kiddie table...OPEC pumping out 31MM B/D, 95% of their total capacity.
Gots to sell rolex on the corna to lern the bidness.
Good point, but at extremes, as the oil market is now with storage facilities at capacity and consumers finding fewer uses for oil, even a relatively small amount of incremental marginal supply can have a large impact on price.
Time for Saudi Arabia's secret weapon, Netanyahu, to have the Israelis stage another false flag attack to boost the barrel price of oil. Israel is an ever-reliable ally of the head-chopping Saudis, as it showed in the months leading up to 9/11 when Mossad agents kept an eye on the Saudi hijackerss and also after 9/11, when Mossad agents sent letters containing weaponized anthrax spores to the U.S. Congress from New Jersey (not too far from where the "dancing Israelis" were arrested).
+1,000
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KEEP the DOLLAR up UP and AWAY !
Any witch way Janet Smellin and MIC partner.
Why doesn't the headline read "Iran finally succumbs to Petrodollar in last desperate US bid to prolong its hegemony"?
All the good headline writers have today off?
My Bold face for below the fold would be:
Just because we sell to the Europeans doesn't mean loosing Persian Identity
What about this for a headline: "Iran sells oil in anything but dollars".
http://www.xe.com/currency/irr-iranian-rial
Obama is nothing more than a "Shia Pet"
With apologies to the Chia Pet company.
lmao!
I saw that commercial, I got a buddy who is perfect for one of those, thanks for reminding me! ;-)
How dare you use dear leaders name in such a way. Especially in the midst of his fans here at zerojew.
Allowing Iranian oil back to the global market and Saudi pumping all they can combined with war on two fronts and international sanctions.
I would say someone has a serious hard-on for collapsing Russia.
This will put the Russian-Iranian alliance over Syria to the test for sure. But could also be seen as a stab in SA's back. Remember, their oil reserves are where their Shia minorities live.
All the Iranians have to do is sell Russian oil as their oil, get a kickback, and everything is fine.
This was indeed designed to screw Russia.
But it wont happen this time around (unlike 1980s when Saudis helped to bring down the USSR with similar pumping policies).
Unlike the USSR, modern Russia is run by a mafia state of families of oligarchs. Lean and mean, pure evil and greed. 500 wealthiest families own 95% of all the wealth and resources of Russia today.
USSR economy was burdened with providing military and economic assistance to half of the world's population, including the weakest republics within USSR. The "Families" of modern Russia help none but themselves with almost the same immense resources.
But the regime will not go down ever - Russians understand that the choice is very limited. Is the better of two evils. Being slaves to the global NWO mafia and having absolutely no control over your country and life or being slaves to your own home-grown oligarphs, who might take some care for the country?
"WikiLeaks cables condemn Russia as 'mafia state'" http://www.theguardian.com/world/2010/dec/01/wikileaks-cables-russia-maf...
As for temporary economic unpleasantries for the slavic slaves, 5-10% fall in GDP is nothing to this people.
Remember WWII.
Inconveniences according to German popullation: shortage of coffee and having to drink chicory substitutes.
Inconveniences to Russians under 900 days siege of Leningrad: eating corpses of their friends and family.
True enough. The Russian Federation (latest incarnation of the Dutchy of Mucovy) will be with us long after the Kingdom of Saudi Arabia has reverted to mean (less than zero).
I <3 cheap gas.
Hey Trump, here is an idea to send everyone into a tizzy. Make the gas stations put the origin of their gasoline on the pumps. Product of Iran, Product of Saudia Arabia, Product of ISIS, etc. Americans have a right to know what they are buying.
http://www.nacsonline.com/YourBusiness/FuelsReports/GasPrices_2013/Pages...
It would say Canada and Mexico. Then the whole narrative would be fooked.
"Make the gas stations....."
What a good little statist you are.
Question still is,who will now monitor Israel?We've seen and heard their big mouthpiece but when is Israel going to be forced to open up to full nuclear inspection along with their nuclear weapons programs?The peace in the region also must look forward now to Israel giving up its' West Bank land which would bring them back to the old border lines.Jimmy Carter's recent book,put the big flashlight on the present Israeli rulers who are nothing but a bunch of extremists themselves.Iran has settled,now we'll see if the Zionists have to be forced into doing what they are told to do from Washington.Iran was in a much better global-economic position than Israel for development.It opens up Iran's relationships with Europe,so Iran has a number of very large economic allies like India,China,Russia.Trade will eventually expose the Zionists because their fear card has been played and found to be bogus( the Iran is developing atomic weapons card,which was Bullshit).The far NeoCon right wing is losing.
IIran already has the bomb. The "inspections" were a charade. The most the West really got from Iran is a promise not to use its nukes on Saudi Arabia in return for an end to sanctions.
Funnily enough, once a country gets the bomb the banksters start taking it seriously. That's what Israel had to do, and that's what Iran did.
Then*weeping* they took the babies out of the incubators.......
and droned them.
RIPS
Saudi is real pissed. Lets see what they do to teach US a lesson. *cough* Riyal *cough*
I'm going to be downvoted.This is one thing that Obama did right.This is one time the US foreign policy reflects US interests.
Yeah, no.
( displaying your colorful ass is a baboon trait.)
American interests? Or Corporate interests?
Start a war, sell arms. American exceptionalism
If we are going to pursue a less belligerent course towards Iran, you are right. He gets the blame for what's wrong, but he gets credit even if he does 1 thing right.
Time will tell, we'll see.
***
There are possible sanctions looming over their missile program.
As RR would say, trust but verify. Of course, having overthrown Mossadegh back in the day, The Iranians should have the same wary view of Uncle Scam!
Agree.
I also think that whether or not Iran wants to develop Nuclear weapons is its own business.
It has nothing to do with the world or the USA.
We all know from recent history, the ONLY way to have the USA leave you alone is to have an atomic bomb.
That's why North Korea is left alone and why Lybia, Iraq and Syria were not.
Squid
is nk being left alone more about them having a bomb they can deliver to where, hawaii?, or china having a whole buch of them & us being their beyotches?
nk is china's barking dog and a military buffer zone. china should have hired chavez to run nk. press reports would have been a lot more fun and chavez would have china behind him giving him all sorts of leeway to bash the zionazis. i still laugh at the way he mocked shrub. maybe kim should study him and we could get a korean version. "die! you yankee dog!" geta old too quickly.
generally agree but I think he saw the writing on the wall (or was told in no uncertain terms by putin, etc) that russia & china were going to let them out of the penalty box w/ or w/o us anyway so better to get something than nothing. fwiw I gotta say I've been pretty pleasantly surprised at iranians behavior so far which is good in one sense but arguably bad in a bigger one in that it calls into question credibility of us govt over last several decades (not that they have that much credibility to lose at this point..)
iran has always been the rightful power fulcrum in the mideast to keep israel and the sauds in their box. it has finally been reestablished.
the bigger point here is russianad china have their hooks in iran. usa involvement gives iran a counter to their influence and gives the usa a diplomatic segway to engage russia and china through a mutual interest.
israel can now take its place as the inconsequential lebanon like beach on the med. totally useless except for vakay time but since bds, who wants to go there? it would be blood money to pay for more dead palis.
i bet one way plane tickets to jfk are really expensive.
why aren't those airline tickets dropping !@#%! i need to go somewhere & the ticket i need has gone up by $600 since Sept. 2015.
http://fox17online.com/2016/01/17/no-joke-gas-is-47-cents-per-gallon-in-...
A lower oil price? Shouldn't we be cheering? After all, if wages aren't going up but necessities are dropping in price - isn't this the way things are SUPPOSED to work? More competition, more productivity equals lower prices, what's NOT to like about that?....
Yes, cheap oil in and of itself is great. What's not to like is the possible reason behind why it's getting cheap - not more competition and productivity but a deflationary drop in economic activity that will come with lots of painful defaults and job losses making cheap oil small consolation.
Of course, even that pain would be a good thing if part of a lasting correction back to market-set prices and sound capital allocations, but we know the manipulators won't tolerate that
Let gas prices go to 22 cents again.I can't get anymore unemployed than I am now.
Iran is pursuing ICBM tests.
To any rational general this would signal that they have finished building a nuclear warhead and are in the stage of pursuing development of delivery vehicles. (ie: they got the nuke, they just need a way to get it where its going).
But w.e the U.S. govt is inept and has a wet noodle for a dick because...Obama.