- News out of the JCPOA discussion suggests the US is desperate for a deal.
- According to tanker tracking sources like Kpler, Iran has at least 70-80 million bbls that's ready to be sold once the sanctions are lifted.
- In addition, we expect an increase in production of about ~1.4 million b/d, which will directly translate into higher crude exports.
- In the case of sanctions being lifted, backwardation along the Brent curve will get hit.
- But in the case of energy stocks, that's one less geopolitical risk factors to worry about, so this may be a positive.
For further details see:
Iran Deal Feels A Bit More Certain This Time Around And What It Means For The Oil Market