By Micah Halpern
I've Been Thinking:
Iran has pledged to continue to export oil. Actually, they promised to export even more oil and increase their current production numbers.
This Iranian declaration comes despite the threat US President Donald Trump made if Iran were to do just that during the speech he delivered at the United Nations GA.
Currently Iran exports 2.6 million barrels of oil a day - that is up from 900,000 daily barrels in 2015, before the sanctions were lifted. It is a three-fold increase.
President Trump explained that the deal with Iran was one of the worst deals in history and during the campaign he threatened to rip up the deal. He hinted at that again during his UN speech.
But Iran's oil exports are not a violation of the terms of the famous nuke deal. They are pushing the OPEC quotas. Actually, that is good for the rest of the world as it will force down the price of oil in the world market.
It seems that Iran is making more money, but less per barrel. It is a mistake to cap them. An unintended consequence of Iran continuing to increase their exports is that they may, at the same time, break OPEC's control of the price of oil in world markets.
Micah@MicahHalpern.com
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