Oil Prices and the Cancellation of the Iran Deal

Discussion in 'Commodity Futures' started by bone, May 8, 2018.

  1. Maverick74

    Maverick74

    It will have a large impact on the WTI/Brent spread since Venezuela produces a very heavy grade oil. It should affect WTI more than Brent. Iran on the other hand will likely affect Brent more than WTI. So both events have huge spread implications. I would argue the summer demand for Gasoline will impact flat price more for WTI in general. Supplies are already tight, we know that. Just how much demand we are going to have is still uncertain.
     
    #21     May 13, 2018
  2. vanzandt

    vanzandt

    It sounds like it matters who wins the election. They are supposedly sitting on the world's largest proven reserve. From the chart below, it would appear they could produce a lot more if the right government was in place. I imagine the world's oil traders will be watching. Figured you'd know.
    venezuela-crude-oil-production.png
     
    #22     May 13, 2018
  3. Maverick74

    Maverick74

    It's junk oil though. Very heavy, very dirty. It trades at a huge discount to both WTI and Brent. It matters, but not as much as people think. I'm sure it's more psychological than anything else with prices where they are now.
     
    #23     May 13, 2018
    vanzandt likes this.
  4. dealmaker

    dealmaker

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    #24     May 16, 2018