• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Trump Ditches the Iran Nuclear Accord — Here's What It Means for Oil

Trump Ditches the Iran Nuclear Accord — Here's What It Means for Oil

May 10, 2018
Forbes

The decision to pull out of what Trump has labeled "the worst deal ever" should have major consequences for Iran's oil industry, which has raised oil output from 2.7 million barrels per day to 3.8 million since President Obama signed the agreement to lift economic sanctions in return for an end to Iran's pursuit of nuclear weapons. The deal fed a growth in oil exports from 1.1 million bpd during the previous period of sanctions to 2.2 million bpd in March. Iran must have expected Trump's move, because in April they sold all the oil they could, ramping exports to 2.9 million bpd, according to Bernstein Research.

William Featherstone, analyst at Credit Suisse, said before the announcement that a snapping back of sanctions on Iran could reduce its oil output by about 200,000 bpd in the near term. But even if Iran had to give up all of its gains and return to pre-deal output levels, don’t expect any lasting oil price spike.

That’s because the world remains awash in oil. No doubt OPEC has worked hard to mop up excess inventories in the past two years by restricting output. Global inventories have shrunk from 325 million barrels above 5-year averages down to just 30 million barrels.

But holding inventories is different from holding spare production capacity. In the event that Iranian oil exited the market in a hurry, the Saudis have throttled back enough wells that they are sitting on an estimated 1.7 million bpd of untapped capacity. The Kuwaitis have another 300,000 bpd they could bring back online.

Read full article

RELATED CONTENT

RELATED VIDEOS

Logistics Outsourcing Sourcing/Procurement/SRM Supply Chain Planning & Optimization Technology Global Supply Chain Management Regulation & Compliance Supply Chain Security & Risk Mgmt Chemicals & Energy Middle East/Africa
KEYWORDS Chemicals & Energy Global Supply Chain Management Logistics Outsourcing Middle East/Africa Regulation & Compliance SC Planning & Optimization SC Security & Risk Mgmt Sourcing/Procurement/SCM Supply Chain Analysis & Consulting Technology
  • Related Articles

    Here's Why the U.S. Has Lost Competitiveness for Decades - and What We Can Do About It

    How Trump's Iran Deal Exit Could Hit Aviation and Car Industries

Forbes

From Virtual Restaurants to Exclusive Pop-Ups, the New War in Food Delivery Is in the Kitchen

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • silicon wafer

    Fate of U.S. Chipmaking Looks More Like Fantasy

    Technology
  • Truckers Protest

    Will Truckers’ Protests Be the Thing That Finally Breaks Supply Chains?

    Logistics
  • digital work

    Could Data Standards Solve the Supply Chain Crisis?

    Logistics
  • gas

    Supply Worries Send Gasoline Prices to Record Highs

    Global Supply Chain Management
  • Mobile App

    Podcast | Companies Are on a Shopping Spree for Supply Chain Software

    Technology

Digital Edition

Scb feb 2022 sm

2022 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

  • Fast-Growing Fashion Brand Scales E-Commerce Fulfillment With Whiplash

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics Generix
GEP GIB USA GreyOrange
Here Honeywell Intelligrated Inmar
Keelvar Kinaxis Korber
Liberty SBF Locus Robotics Lucas Systems
Nvidia Old Dominion Parsyl
Redwood Logistics Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Whiplash    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing