Oil traders fear that a U.S.-Iran nuclear deal, which could come as early as this week, could pave the way for exports of Iranian crude to already-glutted world markets. If so, that could send WTI prices tumbling below $50 a barrel, a level not seen since April.
Traders are also concerned that a surprise uptick in weekly U.S. oil inventories last week may signal the start of another build in U.S. supplies once summer driving season peaks.
Saudi dropped the price from 100 to 50 while Iran's deal possibly could make it near 40. Who are we ally with?
Your "thanks" for the "deal" are very misdirected.
It's always opposite, if everyone is expecting a drop, it'll go up
True, lifting Iran sanctions will further flood the market, but Iran doesn't have the production capabilities to be a long term threat.......as of now. They've been stockpiling crude, waiting for sanctions to be lifted. The excess crude in the market will lower prices through extra inventory, temporarily. It will be more of a problem for Saudi share. It might actually force Saudi to finally ease up on production. Their rainy day fund isn't looking so great at the moment. Their goal of hurting US shale didn't work as intended. It hurt labor but not production. You should be more worries about the Chinese market situation. They've been gobbling up that extra production but that might stop unless they stabilize.