Iranian oil potentially returning legitimately to the market will not be a shock and a complete return will not take place at least until the summer of next year, Goldman Sachs says, as the U.S. is taking part in indirect talks about the so-called Iran nuclear deal.
“With OPEC+ appearing to manage its exit for now, supply concerns will likely shift to the potential return of Iran to the JCPOA (Joint Comprehensive Plan of Action) agreement,” analysts at Goldman Sachs said in a note on Monday, as carried by Reuters.
The United States is engaged in indirect talks about the Iran nuclear deal with diplomats from Europe, Russia, and China in Vienna.
Currently, the U.S. sanctions imposed by the Trump Administration are preventing Iran from exporting all of its oil, as many buyers around the world don’t want to risk their U.S. assets by doing business with Iran.
U.S. President Joe Biden has signaled a willingness to return to the nuclear deal, but only if Iran returns to full compliance in its nuclear activities.
“We don’t anticipate an early or immediate breakthrough, as these discussions we fully expect will be difficult. But we do believe that these discussions with our partners and, in turn, our partners with Iran is a healthy step forward,” Ned Price, U.S. State Department spokesman, said on Monday.
Click here to read the full article.
Source: Oil Price