What Iran deal means for you? Cheap oil!

Posted: November 26, 2013 in Uncategorized
Tags: , ,

The deal US/Iran can be very important for you.

Iran currently exports 750,000 barrel of oil per day, while its non- sanction capacity is 2,500,000 barrel of oil per day – practically the difference is a full 10% of the US oil consumption!

The Oil (WTI) now still trades within its “band” around USD 94, but specially after Christmas there will be a slow descent which will increase under USD92.

Now Iran will be allowed to export 1,000,000, not the full $2,500,000. The oil will probably slowly descend towards is  no risk price of $75/80. When and if Iran will be allowed its full capacity (probably 2015 if nothing goes wrong) we could even see oil around USD 65.

This is practically a boost of 10% in every company and even in your wallet when you go and refuel your vehicle.

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