Iran Economy NewsOil prices sink below $35 on fears of more...

Oil prices sink below $35 on fears of more Iran oil – CNN


Oil is getting close to crumbling below levels not seen since the financial crisis. Prices slid to $34.53 a barrel on Monday morning, CNN reported — the cheapest level since February 2009. The drop was fueled by concerns about a surge in Iranian oil production as soon as next month. The country is awaiting sanctions to be lifted early next year.

It’s the latest blow for oil, which has lost an incredible 14% of its value this month alone. If it keeps falling, oil will take out the crisis low of $32.40 a barrel that was set in December 2008 and fall to the levels unseen since April 2004.

Rather than global economic depression, prices today are being slammed by a massive glut of oil. The oversupply issue is only going to be worsened by Iran, which is gearing up for its highly-anticipated return to global oil markets after years of sanctions had blocked it.

Iran has said it will boost its output by 500,000 barrels per day immediately after sanctions are lifted, possibly as early as next month.

New comments from Iran suggest the OPEC country is not willing to let the oil crash mess up those plans.

There is “absolutely no chance” Iran will delay its plan to boost oil shipments despite cheap oil, Amir Hosseein Zamaninia, Iran’s deputy oil minister for international and commerce affairs, told Bloomberg.

Iran’s return to the oil market may be giving OPEC leader Saudi Arabia another reason to keep pumping oil at an all-out pace. The Saudis, longtime rivals of Iran, realize stronger prices would help boost Iran’s chances of an economic rebound.

All of this explains why some are bracing for even lower prices. Russia’s top finance official said the nation is planning for prices to sink to $30 a barrel in 2016, spelling more trouble for the major energy producer.

Cheap oil has sparked renewed concern on Wall Street about the health of the global economy and corporate profits. The oil crash has wiped out one-quarter of the value of the stocks in the S&P 500 energy sector. Individual stocks like Chesapeake Energy (CHK) and Southwestern Energy (SWN) have lost a stunning 80% of their value in 2015.

After tumbling earlier in the day, oil prices rebounded on Monday and were recently trading at $36 a barrel.

Latest news

Iran Regime’s Ministry of Culture’s Decision To Eliminate Children’s Intellectual Centers

With the so-called ‘Cultural Revolution’ which took place between 1980 and 1983, the Iranian regime tried to purge the...

Water Shortage Crisis and the Destruction of Iran’s Water Resources

Iran is currently suffering from a number of dangerous natural disasters. One of the most worrying is the drying...

Economic Freedom Under the Rule of the Mullahs in Iran

The Fraser institute published its annual report of the index of economic freedom on September 8, which measured the...

Iran’s Regime Continues Its Internet Restriction Project

This is part of the outlook of a document by the Iranian regime’s Supreme Council of Cyberspace, which has...

Iran’s Human Development Index Dropped Sharply

One of the most common questions asked in primary schools by teachers all over the world is, “wealth or...

Narcotics Iran Regime’s Income Source for Terrorism

Besides Iran’s malign activities, such as its regional interference, and missile and nuclear projects, drug trafficking plays a major...

Must read

Iran’s senior leadership to announce joint decision on August 1

Iran Focus: Tehran, Iran, Jul. 27 – Iran’s Supreme...

You might also likeRELATED
Recommended to you