- Iran’s return to the oil market could trigger a "positive supply shock," sending oil prices plunging by as much as $20/bbl; Iranian oil could roil markets since there is already adequate supply sloshing around at a time of subdued global economic growth.
- Saudi Arabia, which has been cranking up production to record levels to offset falling output from unstable producers, may cut its own production to ensure price stability, leading to a more subdued $10 decline.
- It may not take too long for Iran to reach ~4M bbl/day pre-sanction levels since it stopped production only due to declining exports, says the head of SVB Energy.
- ETFs: OIL, USO, DBO, OLO, USL, CRUD, UCO, DTO, SCO, SZO, DNO, UWTI, DWTI, BNO, UOIL, DOIL.
Global oil prices could sink if Iran returns to the market
Sep 27 2013, 10:31 ET