Iran nuclear agreement.

[tut]

Lots of euphoria over this, mainly from the USA of course.

For the rest of us associated with the Oil Industry it means that Iran will be coming back online as an exporter now that sanctions have been lifted, the second largest producer in OPEC after Saudi, seventh largest in the World. The oil lake just got bigger.

tut

[j2 lot]

Not good news for the oil market

[David]

Don't panic yet

http://www.bbc.co.uk/news/world-us-canada-35338901

[tut]

Best outcome would be a War between Iran and Saudi Arabia, both Countries with appalling Human Rights records, destroy the oil fields which would cut down production nicely, if that was not enough the remaining OPEC Countries could also cut back without being dictated to.

On top of that it also makes for good TV viewing especially if dog fights were involved. Saudi has no warfare experience but has the latest equipment and I think that their pilots would make a very good showing for themselves, they are trained by ourselves as are the Oman ones, whereas Russia has a mix of oldish Russian, American, French, and Chinese fighters.

It would certainly beat Big Brother and Celebrity Ice Dancing on Stilts.

tut

[mwmackenzie]

The news was saying they were wanting to sell a million barrels a day guess the cost of fuel will take another dip as the market gets even more saturated?

[robin]

Best outcome would be a War between Iran and Saudi Arabia, both Countries with appalling Human Rights records

Unlikely that a war between the two countries will result in anything other than enormous civilian casualties, yet more refugees and little-to-no actual progress in sorting out how the peoples of the region might be able to live together (and with the west) without endless bloodshed. Of course it will result in an increase in the oil price, eventually. It's hard to see how such a war would not spread into Iran, Syria, Lebanon (as though these countries aren't already at war!). It's pretty much the worst possible outcome, to be honest.

[tut]

Tongue in cheek, it ain't going to happen. However stability is needed and oil price extremes is not a good recipe.

tut

[Mikie711]

The news was saying they were wanting to sell a million barrels a day guess the cost of fuel will take another dip as the market gets even more saturated?

The market has been reflecting this for a while now. 1 million bbl/day is 1% of the current average production rates world wide, give or take so not going to have a cataclysmic effect on price. The damage is done in the confidence in the commodity. All the big money that trades futures have moved out into something else as the volatility is to hard to predict with any certainty.

[thinfourth]

If you thought iran was a big issue for the north sea i have even worse news

The scottish government has said they are going to help the north sea industry

No doubt that will involve ensuring all risk assessments are written in gaelic and we must spend at least an hour a day waving a flag at anything that is broken

[Scuffers]

The news was saying they were wanting to sell a million barrels a day guess the cost of fuel will take another dip as the market gets even more saturated?

The market has been reflecting this for a while now. 1 million bbl/day is 1% of the current average production rates world wide, give or take so not going to have a cataclysmic effect on price. The damage is done in the confidence in the commodity. All the big money that trades futures have moved out into something else as the volatility is to hard to predict with any certainty.

combine this is the US banks that were manipulating the markets to keep oil high 12+ months ago, the the difference is dramatic, oil should have been ~$60-70 before all this, at which point a fall to $40 would not have seemed so bad.

[tut]

It would seem that USA fracking is now running at a loss and operations are starting to close down.

tut

ps:- I am not even benefitting from the low price of fuel, until the Elise season starts again we go days without the Honda even leaving the garage.

[PhilA]

The scottish government has said they are going to help the north sea industry

No doubt that will involve ensuring all risk assessments are written in gaelic and we must spend at least an hour a day waving a flag at anything that is broken