“The trading executives were unanimous in predictions that oil production from Iran will be slower than expected to return to the market after the lifting of sanctions in January,” according to Bloomberg.
The good news is U.S. shale output is slightly declining, but challenges remain on the output front from OPEC producers.
OPEC has hinted at its desire to limit production in face of the prolonged low oil environment. However, Iran, which has just recently re-entered the global oil market, is only just starting to ramp up production, potentially putting a damper on plans for a OPEC cut.
United States Oil Fund