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Iran ready to flood a already saturated oil market .

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Iran  May very well get their wish.  The markets worldwide are edgy and oil is the Dynamo .  Now comes the news that Iran could flood the market with 50 million barrels of oil they are holding in reserve .  This could inject new instability into an already edgy world economy .

 

I am no financial wizard, I tend to look at things more tactically. With Iran and Russia on friendly terms will Iran flood the market and further harm the Russian economy?  I am no financial wizard, I tend to look at things more tactically. With Iran and Russia on friendly terms will Iran flood the market and further harm the Russian economy? Or have they worked a deal out?

 Now here's the conspiracy folks.   Iran cannot release the oil until the deal is approved by Congress and they meet the stipulations of the agreement . Once again oil could be the deciding factor in all of this. Not the desire to keep Iran from obtaining nuclear weapons .  From what I've seen of the deal I don't see it as much of a stumbling block for Iran's weapons program .  Was this all preplanned when OPEC increased production ? 

 

Everyone knows me as pretty much of a skeptic. I but I am having a hard time understanding the motivation  behind the agreement and the affect everyone knows that lower oil prices will have on the economy worldwide .

 

 I honestly see something nefarious behind all of this movement .  I just can't quite put my finger on it ?

 Everyone please read the link and tell me whether you see the last year as being  under the law of diminishing returns for the world's economy ?

 

"About 60% of oil market experts view supply as the main driver of prices today, compared to the dollar’s value at 20%. Iran’s nuclear deal with the West could lift crushing sanctions and unleash millions of barrels of Iranian oil onto an already saturated market. Iran could now be hoarding over 50 million barrels on tankers in the Persian Gulf, versus the 30-40 million barrels previously thought. This is well over double what Iran was believed to be holding 16 months ago and would exacerbate the glut that has plummeted oil prices to six-year lows at $41/barrel, down from $100 last year."

 

http://www.forbes.com/sites/judeclemente/2015/08/20/iran-looms-large-over-the-international-oil-market/?ss=energy 

Edited by Falling down

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Well I bet there is a side deal, that no one knows about, which will allow Iran to go ahead and release the oil.. Plus with the stocks down over 800 points in two days, and thing is possible... I also thing Iran and Russia had come up with a deal, that will not hurt the Russian economy, if Iran does release all their oil in reserve..

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Well I bet there is a side deal, that no one knows about, which will allow Iran to go ahead and release the oil.. Plus with the stocks down over 800 points in two days, and thing is possible... I also thing Iran and Russia had come up with a deal, that will not hurt the Russian economy, if Iran does release all their oil in reserve..

I also agree with both of your assumptions .  That was my thoughts on the matter also.  I'm just having a hard time figuring out how one benefits the other while neither will benefit the world economy ?

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 I have been reluctant to make this statement. But to me it almost seems like the Iran nuclear deal was done on purpose in order to hurt the world's economy ?

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Perhaps Iran and Russia would like to join in on the Saudi/Opec attempt to squash U.S. Hydraulic Fracturing.

The fracking process costs up to ten times more than the 5-6 Dollar range to produce a barrel from conventional wells.

Fracking becomes economically problematic at prices under 60 Dollars a barrel.

There have been many consequent reductions and cancellation of operations.

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 I have been reluctant to make this statement. But to me it almost seems like the Iran nuclear deal was done on purpose in order to hurt the world's economy ?

You are mostly right... Nothing Obama does, is good for the economy or anyone else..

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Perhaps Iran and Russia would like to join in on the Saudi/Opec attempt to squash U.S. Hydraulic Fracturing.

The fracking process costs up to ten times more than the 5-6 Dollar range to produce a barrel from conventional wells.

Fracking becomes economically problematic at prices under 60 Dollars a barrel.

There have been many consequent reductions and cancellation of operations.

I certainly agree fracking is more expensive. But I don't see Russia joining a  attempt to end it most of their gross national product comes from oil. prices under $80 a barrel threatens russia more than anyone else .

 

 I also don't have a problem if a barrel oil stabilizes around $60 a barrel. It's an improvement from where it is now and will aid the world economy. The US can always Frack later  when the price of oil goes back up. That oil and gas has been locked in shale for millions of years it's not going anywhere .

 

edit;

 

natural gas is also obtained by Fracking  people tend to forget that and only concentrate on the oil aspect .

Edited by Falling down

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I certainly agree fracking is more expensive. But I don't see Russia joining a  attempt to end it most of their gross national product comes from oil. prices under $80 a barrel threatens russia more than anyone else .

 

 I also don't have a problem if a barrel oil stabilizes around $60 a barrel. It's an improvement from where it is now and will aid the world economy. The US can always Frack later  when the price of oil goes back up. That oil and gas has been locked in shale for millions of years it's not going anywhere .

 

edit;

 

natural gas is also obtained by Fracking  people tend to forget that and only concentrate on the oil aspect .

An attempt to arrest U.S. fracking in order to bring the price back up in the longer term.

If U.S. wells shut down and smaller players evaporate, it becomes harder to justify the capital needed to restart at 80 a barrel than at the high of 145.

Edited by VonLud
.

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An attempt to arrest U.S. fracking in order to bring the price back up in the longer term.

If U.S. wells shut down and smaller players evaporate, it becomes harder to justify the capital needed to restart at 80 a barrel than at the high of 145.

if the smaller players evaporate the larger players buy them up which makes the capital to restart the process much simpler to find .

 

 in many wells when the Fracking is done it is done for both natural gas and oil . They are often found together in the shale fissers.  Besides like I said natural gas will still carry much of the shale fracking industry .

Edited by Falling down

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I'm not trying to bust your chops, but there is an existing/burgeoning glut of natural gas as well.

http://www.wallstreetdaily.com/2015/06/26/iran-sanctions-natural-gas/

http://www.fool.com/investing/general/2015/06/10/a-glut-for-natural-gas-too.aspx

 

 Natural gas often has gluts on production in the summer .  I remember reading about the natural gas glut last year . 

 

 The thing is winter is coming ,  if you're going to bet against natural gas going into winter you are going to lose .  Gas is clean baby!!! Electrical plants are all converting to it.  60% of US homes and businesses are heated by it  The future for natural gas is so bright "it's gotta wear shades" . ?

 

 

 Now that we're done going off topic. What do you think is going to happen with the Iranian oil ?

 

 

 

 

Edited by Falling down

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The answer to this is really simple. Any deals that are ever made are ALWAYS
made to harm the average citizen. The reasons as to why are always irrelevant
because the people will only learn the truth many years later. Knowing why will
not change anything anyway!

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