Iran oil, energy sanctions still in force after nuclear deal: U.S.

[FarCenter]

The nuclear deal signed on Sunday will not allow any more Iranian oil into the market, or let western energy investors into the country, but it does freeze U.S. plans for deeper cuts to Iranian crude exports, Washington says.
Iran and six world powers reached a breakthrough deal early on Sunday to curb Tehran's nuclear program in exchange for limited sanctions relief.

But U.S. and EU sanctions on Iran's energy sector, which have prevented western energy companies from dealing with Tehran, and slashed its oil exports from 2.5 million barrels per day (bpd) to around 1 million bpd, will remain in place.

"In the next six months, Iran's crude oil sales cannot increase," a fact sheet posted by the White House on the U.S. State Department's website on Sunday said.

"Under this first step, the EU crude oil ban will remain in effect and Iran will be held to approximately 1 million bpd in sales, resulting in continuing lost sales worth an additional $4 billion per month, every month, going forward."

http://www.cnbc.com/id/101223697

This was critical to protect high oil prices in the global marketplace.

In the long run, Iran will benefit by being able to sell its oil at much higher prices in the coming decades.

[dipsydoodle]

1. Going forward..........

a bi-product of which being that Iran will continue to be forced to burn off significant amounts of gas. That should really cheer up those concerned about global warming.

[FarCenter]

2. But keeping Brent at $110 a barrel curtails the use of oil

A lower price would encourage more consumption, especially in China, India and other developing countries.

This was probably the best that the US could do, since India, China and other countries are tiring of US-imposed sanctions interfering with their economic development, and they would probably find ways to unilaterally break the sanctions.

[dipsydoodle]

3. That's the other upside.

Last edited Sun Nov 24, 2013, 05:13 PM - Edit history (1)

India and China avoid use of petro dollars and so help speed the demise of that scam.