OTCPK:MAUXF - Post by User
Post by
gibbonsjon Nov 20, 2013 12:36pm
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Post# 21923366
blue_eagle. re. Iran
blue_eagle. re. IranDespite all of Obama’s and Kerry’s grandstanding there is much opposition to a significant relaxing of sanctions. Furthermore when fields are under utilized for extended periods such as is now the case with Iran it will take a few years to bring them back to peak levels. The risk is Iran will begin selling what they can at massive discounts to recover their buyers who by now have filled their demand from other sources. Despite Saudi and other major producing countries having very low production costs their economies rely almost exclusively on o&g revenue and require +$80/b to balance their budgets. OPEC also has the means to curb supply who have stated they would like to maintain $90 to $100. The big threat to over supply in the longer term is the Arckaringa Basin. Its a few years away but its coming, add this to what Russia is doing in the Artic and investor confidence could sour. As in the case with MMT its not always the facts but rather perception that shapes sentiment.