Time To Go Long Oil Again As Iran Ramps Up Uranium Enrichment
By Elliott Auckland:In the past few months, oil prices have sold off heavily on four major factors: a higher dollar, a weaker global demand picture, a supply glut, and the apparent easing of Middle Eastern tensions. While the first three are undeniably true, one can easily question the last point, especially on recent developments in the Middle East region.The biggest focus in the oil market is on Iran, less for its production capabilities (4.9% of global production), but more for its geographic position. Iran, through the strait of Hormuz control the major (20% of global production) supply line of oil tankers from the Middle East. Recently, however, hopes had been that talks in Baghdad between the P5 + 1 countries and Iran would create common ground and a democratic resolution.I questioned and still do how any major talks will resolve any of the underlying issues, especially in the context ofComplete Story »
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