In One Chart - May 11, 2018
In One Chart: What Iran Sanctions Mean for Energy’s Year Ahead
Global oil markets and production have been cast into uncertainty.
With President Trump’s withdrawal from the the Iran deal, officially called the JCPOA (Joint Committee Plan of Action), and the announcement of plans to impose sanctions against Iran, crude production by the country is expected to decline sharply.
The news has sent Brent Crude oil spot prices above $70 per barrel, the highest they’ve been since 2014. Combined with an ongoing collapse in Venezuelan production, Bank of America has said US sanctions against Iran could lift prices to $100 per barrel sometime next year or sooner.
Energy stock, Chevron (CVX) is shown above, have also gained in price on the news.
Jefferies, the US investment bank, has stated, “we expect that around October Iranian exports will be down by 500,000 barrels per day (bpd) and eventually fall by 1 million bpd.”