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Why Iran’s Return To Oil Markets Isn’t A Major Threat

by capitalizefinancial
April 19, 2021
in Sports
0
Why Iran’s Return To Oil Markets Isn’t A Major Threat

The ongoing JCPOA discussions, involving European countries, Russia, Iran, and, on the sidelines, the U.S., are being watched by international oil markets with trepidation. The possibility of Washington rejoining the international Iranian nuclear agreement is still in doubt, but the Biden Administration appears to be considering the move.

Iran has indicated that it with only rejoin JCPOA if US sanctions on its main economic sectors, namely oil and gas, are lifted. Analysts are worried about the possible negative repercussions for global oil supply volumes and oil prices. The current global oil market is gaining stability, but a complete recovery is far from certain. It is only due to Saudi Arabia’s actions, assisted by the rest of OPEC+, that markets have been able to rebound. One of the main reasons Saudi Arabia has been able to make these unilateral production cuts is that other producers have been kept out of the market.

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