Oil price falls as Iran nuclear framework reached

[DonViejo]

Source: AGENCE FRANCE-PRESSE

Crude-oil prices fell Thursday after six world powers and Iran announced they had agreed on a framework to curb Iran’s nuclear drive.

The US benchmark, West Texas Intermediate (WTI) for May delivery, shed 95 cents to close at $49.14 a barrel on the New York Mercantile Exchange.

Brent North Sea crude for delivery in May, the global benchmark futures contract, slumped to $54.98 in late London trade, a sharp decline of $2.12 from Wednesday’s closing level.

The market has been following the marathon negotiations closely, estimating that an agreement could lift sanctions against Iran, allowing the return of Iranian crude to an oversupplied global market.

-snip-

Read more: http://www.rawstory.com/rs/2015/04/oil-price-falls-as-iran-nuclear-framework-reached/

[Xipe Totec]

1. I bet the military stock index will be dropping as well.

Ordnance sales down.

[Dont call me Shirley]

2. Starve the beast...

the mic

[2naSalit]

8. That's what I say too.

With the price of crude falling, it will be harder for the oiligarchy to recover in time. I think world leaders are actually working that part out o under cover. If the GP of the planet reject the oiligarchy - with the help from governments, they will soon be brought to heel and that can only best for all life on the planet. Sure some will have to change some of their daily activities but it will be worth the overall results.

[cstanleytech]

6. I wouldnt bet to much money on that happening not when there are still other

countries that are willing to invade other countries like Russia did to the Ukraine.
It would be nice though if the government would divert atleast 1/3 of the military budget to other things like the infrastructure which would be a huge boost to the countries economy but of course that probably wont happen until Obama is out of office because the republicans dont want anything positive for the country to happen if its under a black democratic president that they have opposed since the beginning.

[kelliekat44]

3. Hit them where it hurts!! How come stocks don't fall when defense spending goes up? More war

actually means more devastation. The number of jobs created by war is not the same as it used to be...automation has seen to that so more war only creates more wealth for stockholders and contractor CEOs.

[cstanleytech]

7. Agreed. Now an investment in rebuilding the roads, bridges and dams in the country would help alot

more on a dollar to dollar basis than spending on the military does or atleast thats my opinion.

[Surya Gayatri]

4. Unintended consequence, added bonus!

[Vincardog]

5. I thought oil storage facilities were full and now they had to use it or lose it.

[Dont call me Shirley]

9. I think they were actually leaving most in the ground as a reserve

Here's an old link. I saw a new OP yesterday but I can't find it now.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x1426603

[Monk06]

10. Any bullshit excuse to manipulate oil prices downward. It's coming on summer which is the usual

bullshit excuse for raising the price of gas.

Iran oil exports to the west will not increase anytime in the next decade. Bank on it. Iran is in the same category as Cuba as far as US foreign policy goes.

In other words all embargos are permanent if you thumb your nose at the US.

[Skidmore]

11. For all the handwringing by Big Oil

about falling prices per barrel, prices are going up at the pumps.

[Monk06]

12. I read stories that claimed the oil companies are storing a significant portion of the worlds above

ground oil in oil tankers all over the world. And the land tank capacity in the US Midwest is almost full and yet the Saudis keep pumping. There are three explanations for this.

Saudi Arabia is lying about how much oil it is pumping. It also routinely lies about the extent and quality of it's reserves, which is classified information in SA and unbelievably in the US. In other words if a US citizen reveals SAs's actual oil reserves that person could be charged with espionage in SA and the US.

SA has to keep pumping because it's economy will collapse if it doesn't

SA is trying to use artificially depressed oil prices to maintain it's oil monopoly and geopolitical status wrt the West and Israel.

It is also depressing oil prices to weaken Russia and Iran.

Long story short the world is awash in oil above ground due to the US and SA pushing prices up to create an oil bubble and now they are depressing prices down while at the same time restricting or refusing to increase refinery capacity keeping consumer oil prices high.

It's a rigged game until the age of oil is finished.

[damyank913]

14. I don't think the US and Saudi's are acting in agreement.

The Saudi's are flooding the market because they know that other oil companies will not drill new wells as the current ones dry out and for the reasons you gave. The more expensive the production method; the more likely companies will stop production and lay people off. This has already begun to occur in the US. As the stock piles get used the price will rise because production has scaled down. When certain price points are reached different production methods ramp up again. This has been the cycle for many years now.
Although I believe the Saudi's are acting alone, the US is being helped politically by these moves (unless you work for the oil industry). The Russian economy is floundering because their war machine is dependent on the price of oil in the world market. So will Iran's, in as much as Iran's oil isn't light sweet crude.

[Monk06]

15. The US is providing tanker support for SA aircraft over Yemen. Sometimes the US supports

SA overtly, something by aquiescence. US and SA oil interests sometimes intersect, sometimes overlap and sometimes are identical. It's a complicated business.

The allegiance is close. What leader of any other country in the world would allow himself to be photographed holding hands with Prince Abdullah. While this may be customary in SA it is not conventional diplomatic protocol for a nation like the US who is hosting a supposedly smaller less powerful ally.

So while the US and SA are not working together towards the same goals always, they sometimes and in fact most times are.

[Midnight Writer]

13. This is exactly why there is such vehement opposal to the "Deal"

Oil barons collude with Saudi Arabia to block oil sales from Iran, Iraq, and Venezuela. If imports from these countries start flowing freely, their price-fixing schemes fall apart.

So sanctions against Iran and Venezuela and instability in Iraq means big bucks for the oil and drilling industry. And who do the oil barons control in our government? We are about to find out. Follow the money.

There is no greater threat to the oil industry than a free market with robust competition, including alternative energy.