OPEC Argues Over Global Prices and Iranian Oil

Keith Kohl

Written By Keith Kohl

Posted July 20, 2015

Not everyone in the Organization of Petroleum Exporting Countries has the same ideas about what Iranian oil supply will do to the group’s market shares.

Predictably, Saudi Arabia is acting unconcerned, as the country is allowing oil prices to drop below $60 per barrel without batting an eye. Then again, the country is also trying to shut down the U.S. shale industry.

Some would say it worked, too—U.S. rig and well counts plummeted and production has slowed as well.

On the other hand, the poorer group members such as Venezuela, Algeria, Angola, and Libya would like to see prices rise again to a more “reasonable” range between $75 and $80 per barrel.

OPEC flagsUnfortunately, oil prices are expected to stay just over $62 for the next year at least, based on estimates from French bank Natixis.

Iranian oil is fully expected to hit the global market after the end of this year now that the recent nuclear deal has been signed.

Although this doesn’t necessarily mean that the current glut will be affected immediately, there’s still a chance this new supply would push prices even lower in the future.

According to Renaissance Capital economist Charles Robertson, the Islamic republic could be exporting 2.4 million barrels per day by 2016. In an already over-supplied market, this could cause more friction between OPEC members trying to hold on to market shares.

“If Iran, Venezuela, Algeria, and Libya… enter into a dispute with the Gulf producers, then it could be the end for OPEC,” says head of Kuwait’s Al-Shall Economic Consultants Jassem al-Saadun.

The organization will have to hope that oil demand continues to grow and U.S. shale stays expensive, or else there will be no room for Iran’s supply when it hits.

To continue reading…

Click here to read the Business Insider article.

Until next time,

Keith Kohl Signature

Keith Kohl

follow basicCheck us out on YouTube!

A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

Angel Publishing Investor Club Discord - Chat Now

Keith Kohl Premium



Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.