Iran’s oil minister said Friday (Jan. 22) that his country has significantly boosted Crude Oil production in the past few months, while Goldman Sachs estimates that the string of actions taken by Biden since taking office has been supportive of oil prices this year and next.
The U.S. Trump administration withdrew from the Iran nuclear deal in 2018 and immediately resumed imposing sanctions on Iran, limiting its crude oil exports, which plummeted from a peak of 2.8 million barrels per day in 2018 to 300,000 barrels per day in 2020.
But the likelihood of the U.S. returning to the nuclear deal has increased significantly since Biden came to power. Iranian Foreign Minister Mohammad Javad Zarif also shouted at Biden to return to the nuclear deal and lift sanctions against Iran, and threatened to miss the opportunity to return to the nuclear deal if sanctions against Iran are maintained.
Industry analysis, the new situation of Iran’s daily production may eventually rise back to the limit of 3.9 million to 4 million barrels, the market should be prepared for this.
The commodity price research team at Goldman Sachs, the leading investment bank, believes that the combination of Biden’s proposed fiscal support economic measures, easing of sanctions against Iran, and moves to limit North American shale oil extraction plans will have a supportive effect on oil prices.
Goldman Sachs also said that although Iranian crude oil may return to the international market, causing an increase in crude oil supply, but in the short term, it is believed that the U.S. Congress will not completely remove the oil export restrictions against Iran, not to bring too big a shock to international oil prices.
U.S. oil service provider Baker Hughes announced that the number of active oil and gas wells increased by 5 this week to 378, the ninth consecutive week of upturn, but compared with the same period last year, the total number of U.S. oil and gas wells still decreased by 416; in addition, the U.S. Energy Information Administration (EIA) said that as of January 15, U.S. domestic crude oil production was 11 million barrels per day.
And on his first day in office, Biden signed an executive order to suspend crude oil extraction and crack down on fossil energy, leading to a heavy drop in U.S. energy stocks and triggering a huge backlash in the oil industry.
Recent Comments