New U.S. State Secretary Could Discourage Global Oil Output
New-York. Incoming State Secretary Mike Pompeo could change foreign policy in a way that could trigger the loss of 1.4 million barrels per day in global crude supply sence of reciprocal efforts by US allies, seem likely to shift Iranian crude volumes from low-risk-tolerance destinations to high-risk-tolerance destinations, changing flows without necessarily changing volumes," analysts with ClearView Energy wrote Tuesday, informs Oilprice.com.
Russia is moving in on both Venezuela and Iran to gain new allies in South America and the Middle East. A consortium of Russian and Iranian companies signed an agreement with Tehran to develop two oilfields located on the country’s border with Iraq this week, Iran’s second deal since the nuclear pact.
Since President Donald Trump’s inauguration, he has threatened on multiple occasions to scrap the deal entirely. Trump has begrudgingly waived sanctions on Iran multiple times so far, as he is required to do every few months as a way of recertifying the nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA).