07.09.2022 - 19:25 [ SpectatorWorld.com ]

How the Saudis embarrassed Biden over oil prices

If the United States and Iran successfully wrap up their nuclear negotiations, Tehran will be free once again to sell its crude legally. According to one energy analyst, Iran could put 1 to 2 million barrels per day on the market rather quickly, which means an abundance of supply and lower returns (not to mention more competition) for the Saudis. While the nuclear talks have again hit a standstill over last-minute disputes, Riyadh doesn’t want to see oil drop to $65 a barrel and is therefore signaling to the market that adjustments will be made in the event Iran is able to return as a full player. Frankly, OPEC has gotten used to $100 a barrel crude, and it has no intention of going back to the days when supply vastly outstripped demand.