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The energy market has already been under pressure in recent weeks after Saudis’ oil minister Khalid al-Falih hinted that the kingdom could meet any demand that materializes and the Organization of Petroleum Exporting Countries could increase production to cap higher crude oil prices.
“With those statements, al-Falih caused Iran supply disruption fears to go away and prices collapsed,” Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management, told the WSJ.
The U.S. is set to implement sanctions on Iran’s oil industry at the start of next week.
The realized loss of Iranian exports will become more evident by the beginning of next year,” given ships loaded in October will still be delivering their cargoes over the coming weeks, Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas, told the WSJ.
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