Oil Prices

[lilvestor]

Bad news for the energy sector, oil prices are going to take a huge dump once the sanctions on Iran are lifted, maybe to $30

You reckon Iran's cost of production is like free? Incidentally, the world uses something like 90 million barrels of oil a day...

Its not free but its definitely far lower than $40, production cost in the middle east is easily lower than that. Besides, a ton of oil has already been produced (50m barrels according to that article), its sunk cost to Iran and they'd sell it even if they are going to lose money, it costs money to store oil ya know?

Consumption is irrelevant as long as supply continues to exceed it, the world was already producing 3m barrels of surplus oil per day before Iran joined the market, that surplus is certainly going to increase when Iran starts producing again.