Looking into oil this week, Iran weighing on prices – BBH

By FXStreet FXStreet (Guatemala) – Despite the short-lived recovery that we have seen today, the price of oil fell yesterday, weighed down by the lifting of sanctions on Iran.

Key Quotes:

“Reports have indicated that in anticipation, the Iranians were using 18 tankers as floating storage. They contain an estimated 12 mln barrels of oil and 24 mln barrels of condensate. However, part of the decline in oil prices in recent weeks may have reflected this being discounted.

Of note, CNOOC, China’s largest offshore oil and gas producer, announced that it would reduce output for the first time in more than a decade. A statement issued to the HK stock exchange earlier today indicated it would produce 470-485 mln barrels (oil equivalent) this year, down from 495 mln barrels in 2015.

Although many narratives put the US shale or Canadian tar sands, or Russian output in the cross hairs of the Saudi strategy, in truth, the aim is primarily at non-OPEC producers, including China. There is talk of an OPEC meeting for next month, but the calls seem the loudest from the traditional high cost OPEC producers, and those seeking concessions from Saudi Arabia (e.g. Iran).”
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Source:: FX Street