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Wednesday, Aug 21
Iran willing to start oil price war to win back market share
- Iran wants to boost oil production by 70% in an effort to retake its place as OPEC’s second-largest producer and is willing to start an oil price war to win back market share lost through sanctions.
- Iran's state-run oil company is bullish about its ability to actually raise production, and the new oil minister - who served in the role from 1997 to 2005 - is welcomed as a respected figure who will remove politics from production.
- Raising production likely would require the return of western oil majors Statoil (STO), Total (TOT) or Eni (E) that quit Iran when sanctions hit.
- Also: A gap in U.S. law has allowed China to import nearly $500M of additional oil products from Iran this year while avoiding sanctions.
- ETFs: USO, UCO, OIL, BNO, DBO, OLO, USL, CRUD, DTO, SCO, SZO, DNO, UOIL, DOIL, UWTI, DWTI.