By Simit Patel:Last week was and eventful one in the saga surrounding Iran and the corresponding tensions in the global economy. Before we get into where this is all headed, let's recap where what's gone down:
HOUSTON, TX – Canadians are not the only ones frustrated with U.S. President Barack Obama’s energy policy.
Alaska Senator Lisa Murkowski and ConocoPhillips CEO Ryan Lance said Washington needs to adapt to the new era of low oil prices by speeding up regulatory approvals and lifting a ban on oil exports that is imposing virtual “sanctions” on already ailing domestic producers.
Murkowski, chair of the U.S. senate’s energy committee, said many U.S. federal policies are “alarmingly deficient and outdated…[and] in need of modernization and reform.”
The nuclear deal signed on Sunday will not allow any more Iranian oil into the market, or let western energy investors into the country, but it does freeze U.S. plans for deeper cuts to Iranian crude exports, Washington says.
Iran and six world powers reached a breakthrough deal early on Sunday to curb Tehran’s nuclear programme in exchange for limited sanctions relief.
The US' complete ineptitude on oil policy is in the spotlight just as predicted. A pair of articles will show what I mean.
China Snubs Geithner on Iran Oil
Bloomberg reports China Snubs Geithner on Iran Oil, Japan Plans Cut
Under pretense of looking for other sources of oil, EU Iran Oil Embargo Over Nuclear Work Said Likely to Be Delayed Six Months
A European Union embargo on imports of Iranian (OPCRIRAN) oil will probably be delayed for six months to let countries such as Greece, Italy and Spain find alternative supplies, two EU officials with knowledge of the talks said.
After initial outrage, bluster and bravado, Iran appears to have come to terms with impending Western sanctions on the country’s oil and financial sector, to the point of saying they don’t think it will have any meaningful impact at all. Iran deems Western politicians as lacking the courage to stick with the ban in the face of a further rally in oil prices; inevitable, as they see it, if the West goes ahead with the ban. So are they right to be so sanguine?
CNBC Reports Geithner Seeks Support for Iran Oil Sanctions From China
As Iranian President Mahmoud Ahmadinejad continued his Latin American tour, U.S. Treasury Secretary Timothy Geithner arrived in Beijing to persuade the Chinese government to support sanctions on the Iranian oil industry.