This will hurt Oil prices, Just Out
WTI crude futures eased toward $90 per barrel on Tuesday after gaining 2% in the previous session, as traders mulled the latest progress in talks to revive the 2015 Iran nuclear accord, which could potentially set the stage for increased crude exports from the heavily sanctioned country. The European Union submitted a “final text” to revive the 2015 deal late on Monday, awaiting approval from Washington and Tehran. A potential deal could boost Iran’s oil exports by at least 1 million barrels per day or about 1% of global supply in six months, putting downward pressure on prices. Meanwhile, investors are eyeing weekly US oil inventory data this week to gauge demand in the world’s top oil consumer, as recent reports pointed to declining consumption. The EIA will also issue its short-term outlook later on Tuesday, while monthly snapshots from OPEC and the IEA will follow on Thursday.
Add additional production now from Iran on top of additional production from new wells in the US and Canada and China's new Shale offshore discovery all happening in an economy that's heading for a major slowdown. $75 Oil by year's end is looking good.