Iran Oil Comeback That Startled Doubters Approaches Roadblock
A series of output disruptions from Nigeria to Canada and Venezuela has meant that the extra Iranian oil has been easily absorbed by the market rather than depressing prices, said Mike Wittner, head of oil market research at Societe Generale SA in New York. Crude futures recovered to more than $50 a barrel last week, nearly double the 12-year low reached in January. With Iran’s comeback almost complete and global demand rising, traders are starting to wonder how much world markets will tighten in 2017, he said.
“By the end of this year Iran will be maxed out,” said Wittner. “Is it bullish? Yeah. When I look around the world and I need a bit more OPEC crude, I ask myself where it’s going to come from.”
--With assistance from Hashem Kalantari and Golnar Motevalli. To contact the reporters on this story: Anthony DiPaola in Dubai at firstname.lastname@example.org; Grant Smith in London at email@example.com To contact the editors responsible for this story: Nayla Razzouk at firstname.lastname@example.org; James Herron at email@example.com Dan Stets
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