Posted on 01/15/2016 11:51:33 AM PST by Citizen Zed
Iranian officials, concerned about selling a flood of new oil exports on the cheap, said they are studying options such as bartering the country's crude for European goods, investing in foreign refineries and changing the benchmark used to price its petroleum.
Western sanctions on Iran over its nuclear program are expected to be lifted within days, allowing the Islamic Republic to export its oil freely and do business with the U.S. and Europe for the first time since 2012. The end of sanctions comes at an inauspicious time for oil exports though.
Prices for Brent crude, the international benchmark, fell to less than $30 a barrel on Friday, down more than 70% since July 2014. Some analysts have said prices could fall further when Iran ramps up exports and adds to the global supply glut that has sent the market into a tailspin.
Iranian oil officials said they want to find ways to sell their oil by locking their customers into special relationships such as oil-for-goods bartering. Such agreements could help Iran during a period of intense competition among oil producers for buyers.
Regional rival Saudi Arabia has abandoned its traditional role of cutting back on its own supplies to calm market turbulence and instead has pumped at or near record levels to claim a bigger share of the market. The Saudis and Russia have homed in on Iran's old turf in Europe, cutting prices ahead of the Islamic Republic's return to the export market.
(Excerpt) Read more at wsj.com ...
How do you barter oil with your own benchmark?
“I’ll give you a barrel of oil for fifty dollars worth of S’Mores.”
“What? Oil is only worth thirty dollars a barrel. I’d lose twenty bucks a pop.”
“That’s okay. You can make up for it on volume.”
“Okay.”
Will the oil glut be the knockout blow for American drilling?
Petro Ping.
How did two American navy boats “drift” into Iranian waters? TWO BOATS HAD MOTOR FAILURES? GPS FAILURES? With the US navy watching ALL THE TIME WITH RADIOS TO CALL THEM? Will someone please tell us? What actually happened? Just ask the commander and let us know what he was “sorry” for. .
Apparently the new breed of drillers can restart shut down oil wells at much less cost than before. Going idle isn’t as devastating as it used to be, but there will always be booms and busts.
Anyone recall the book: Crash of 79. One quote from the book is: I had a sinking feeling when someone in a tent in the desert could threaten to take down the western monetary system. Paul Erdman was the writer who was an excellent writer of financial fiction, er, close to reality.
Iran will be flooding the market next week with oil at whatever price they can get for it. Anything to prop up their worldwide jihad plans. Thanks Obama. Thanks UN.
Apparently the new breed of drillers can restart shut down oil wells at much less cost than before.
False claim
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