Have an article worth sharing? Send it to FUELSNews@mansfieldoil.com, and we’ll share it next week in our Weekly Summary segment. Given the historic important of Trump withdrawing from the Iran nuclear deal, today’s weekly snapshot will focus specifically on the implications of the deal.
Iran Deal Not Dead Despite Trump
France’s Foreign Minister noted that the Iran nuclear deal is not dead, despite Trump’s intentions to withdraw from the deal. Iran has announced they will continue to pursue diplomatic solutions with the remaining members, but threatened to resume uranium enrichment if negotiations fail. Large American and European companies who do business with Iran could face sanctions as well. Click Here to read more from BBC News.
Experts Analyze Impact of Sanctions on Economy & Oil
Analytics groups vary in their opinions of how the Iran Nuclear Deal will impact the economy and oil prices. While none expect lower oil prices or an economic boon, some say the impacts could be muted. In particular, since sanctions will not be imposed for up to 6 months, the deal’s effects may not have a material impact on markets until 2019. Click Here to read more from Bloomberg.
Sanctions Could Threaten Global Economy
OPEC’s Secretary General Mohammad Barkindo noted that Iranian sanctions would disrupt the flow of oil in the Middle East, which could possibly put a damper on the global economy. Prices have soared as markets fear supply outages. Click Here to read more from CNN Money.
Treasury Secretary Mnuchin: Sanctions Won’t Increase Oil Prices
According to Treasury Secretary Mnuchin, oil prices already had the Iranian sanctions priced in, so prices should not rise significantly in response to the sanctions. He added that “various parties” have agreed to increase production to offset supply disruptions in Iran. Barclays warns that a lack of investment in Iranian production could lead to flat/declining production rates. Security Advisor Michael Bolton said the administration would pursue a deal that aligns with the President’s expectations, and that alarmist threats of Middle East war are inflated. Click Here to read more from Bloomberg.