‘Zero Tolerance’ Policy On Iran Will ‘Likely’ Push Oil Prices To $120/bbl, One Bank Says
Back in May, days after Donald Trump pulled the U.S. out of the Iran nuclear deal, BofAML became the first major Wall Street bank to suggest that triple-digit crude might be in the cards.
"Looking into the next 18 months, we expect global oil supply and demand balances to tighten driven by the ongoing collapse in Venezuelan output [and] in addition, there are downside risks to Iranian crude oil exports," the bank wrote, before introducing a 2Q $90/bbl Brent price target for 2019 and cautioning
Since when can the US stop India and China from importing Iranian oil. Delusional as usual.
The Grand Oil Party. RIP.
I will point out some interesting things.
The July 2019 West Texas Intermediate Crude contract is 65.20 at the time of this post.
Does the analyst take into consideration how a global slowdown will impact the demand side?
How much demand destruction will occur from prices $75 and above?
How much exploration/supply will be stimulated by current prices?
Cartels tend to break up as the parties pursue their own best interests as well.
Pretty weak tea IMHO.
‘Zero Tolerance’ will;
cause the Iranian rial to continue to fall in value
create tensions with countries who try to do business with Iran
decrease companies willing to develop future oil producing capacity within Iran
increase the likely hood of an uprising and government change in Iran
Hi H, I’ll go back up and finish reading this article but I had to pause to plead that you decrease the font size on the quotes you are including. It makes it very difficult to read. Maybe leave them bold but decrease the size in half?
I have the opposite opinion – I tend to like the font size… just in case we are voting. LOL!
I think the quotes are too big as well.
China and India doesn’t give a shit where it’s oil come from just that it is available.