One More Unexpected Challenge For Buhari

Yesterday oil prices continued to decline after Iran and global powers agreed on a historic deal that would shed sanctions in exchange for curbs on Tehran’s nuclear program, Leadership informs.

The source notes that sanctions have long restricted Iran’s oil production and exports, and the country is eager to regain its status as a global energy power.

After the deal crude prices fell by as much as 2.3 per cent to $50.98 a barrel.

Financial analysts warn that the deal could lead to a flood of new oil supply from Iran — the country has 30 millions of barrels of crude in storage and ready for sale, according to FACTS Global Energy, an industry consultancy.

The International Energy Agency says: “Tehran has made clear its intention to lift exports as soon as the ink dries on an accord. The bottom of the market may still be ahead, prices were already falling as a final deal neared, dropping to their lowest point in almost three months in early July.”

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Leadership explains that commodities markets were also pressured by financial turmoil in Greece and China. The source adds that the deal could again make Iran an attractive place for foreign investment by international oil and gas giants like Royal Dutch Shell (RDSA) and France’s Total, who were previously barred under sanctions.

SOURCE: Nasdaq.com

An official announcement is expected to be issued by Iran and the European Union after Iran and the US meeting.

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