[It needs be kept in mind that yesterday, April 2nd, only a framework agreement was worked out. The deadline for the final, and actionable, "deal" is the coming June 30th. Then the subsequent processes will commence. The process of lifting of economic, and other, sanctions - those relating to the nuclear issue only, against Iran will commence after verification of compliance. So, even if everything clicks, that could be moths or even years away.
The volatility of oil price is based on expectations only. (It is rather ironical that any further tumbling of oil price is going to pinch hard one of Iran's main backers - rather the main backer, Russia. Also, Iran itself in the interim.) The following excerpt from the report reproduced below captures the prevailing scenario in its very essence. Futures of North Sea Brent crude, the more widely-used global benchmark for oil, were down $2.30, or 4.1 per cent, at $54.80 a barrel by 1:35 p.m. EDT, after hitting a session low of $54. U.S. crude futures settled down 95 cents, or 2 per cent, at $49.14 a barrel, after falling nearly $2. ... The selloff in oil, which began in June 2014, accelerated in November, after OPEC declined to trim output in defense of its market share. Brent crashed from 2014 peaks above $115 and U.S. crude tumbled from above $107.] http://www.theglobeandmail.com/report-on-business/oil-prices-volatile-in-wake-of-iran-nuclear-deal/article23772469/ Oil prices volatile in wake of Iran nuclear deal BARANI KRISHNAN NEW YORK -- Reuters Published Thursday, Apr. 02 2015, 3:26 PM EDT Last updated Thursday, Apr. 02 2015, 4:02 PM EDT Oil tumbled as much as 5 per cent on Thursday as Iran and world powers achieved a preliminary pact on Tehran's nuclear program but pared losses after officials said talks for a final agreement will continue through June. Iran is banking on a deal that would remove Western sanctions on its oil exports. The OPEC nation produces about 2.8 million barrels per day, according to a Reuters survey, but exports only 1 million bpd because of sanctions. It is keeping about 30 million barrels of crude on a fleet of tankers ready to be shipped when allowed, into a market already flooded with supply. The sanctions against Iran will come off under a "future comprehensive deal" to be agreed by June 30, Iranian Foreign Minister Javad Zarif told a news conference in Lausanne, Switzerland, where representatives of Tehran and six world powers met. Oil fell from the start of the day but trading was choppy, as prices tumbled first on news of the preliminary nuclear deal, before recovering somewhat on realization that the talks will drag till June. "The market overreacted and is now sitting back a little to think there is a lot more work to be done," said Dominick Chirichella, senior partner at the Energy Management Institute, New York. Futures of North Sea Brent crude, the more widely-used global benchmark for oil, were down $2.30, or 4.1 per cent, at $54.80 a barrel by 1:35 p.m. EDT, after hitting a session low of $54. U.S. crude futures settled down 95 cents, or 2 per cent, at $49.14 a barrel, after falling nearly $2. John Kilduff, partner at New York energy hedge fund Again Capital, said increased supplies from Iran were a given, and it was time other members of OPEC led by Saudi Arabia consider cutting their production. The selloff in oil, which began in June 2014, accelerated in November, after OPEC declined to trim output in defense of its market share. Brent crashed from 2014 peaks above $115 and U.S. crude tumbled from above $107. "This is the start of the last chapter of the year-long oil price rout, as a supply response will be necessary from OPEC," Kilduff said. "If the U.S. tries to hold the sanctions in place, the U.S. will be likely be very much alone." -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send an email to [email protected]. Visit this group at http://groups.google.com/group/greenyouth. For more options, visit https://groups.google.com/d/optout.
