Iran Tries To Play The Oil Card...Unsuccessfully
No surprise here: Tehran wants to cut OPEC's oil production, thereby sending prices even higher. Higher prices would mean: (1) More money for the mullahs (assuming, of course, that the increase in revenue from higher prices is not offset by a significant decrease in consumption) and (2) Less money for Americans & Europeans to spend elsewhere. Anything that hurts the American economy is good news as far as Tehran is concerned.
Fortunately, as reported in the Financial Times, OPEC said no.
But even the hint of cuts in supply affected oil prices. The FT notes:
Iran’s proposal 10 days ago for Opec to reduce production by 1m barrels a day - or nearly 4 per cent - pushed oil prices close to $70 a barrel.
And:
Oil futures rose 4 cents on Monday to $67.80 barrel in midday trading on the New York Mercantile Exchange.
Iran is Opec’s second largest oil producer, pumping 4m barrels a day and exporting 2.5m of them. A halt in its output would send international oil prices to more than $100 barrels a day, analysts predict.
Fortunately, as reported in the Financial Times, OPEC said no.
But even the hint of cuts in supply affected oil prices. The FT notes:
Iran’s proposal 10 days ago for Opec to reduce production by 1m barrels a day - or nearly 4 per cent - pushed oil prices close to $70 a barrel.
And:
Oil futures rose 4 cents on Monday to $67.80 barrel in midday trading on the New York Mercantile Exchange.
Iran is Opec’s second largest oil producer, pumping 4m barrels a day and exporting 2.5m of them. A halt in its output would send international oil prices to more than $100 barrels a day, analysts predict.
posted by Thomas Joscelyn at 4:50 PM
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