Oil Could See Low $40s on Historic Iran Energy Deal

Iran and six other global powers, led by the United States, have reached a historic agreement on the future of Iran’s nuclear programs. Part of the deal will lift sanctions that have been placed on Iran to curb its nuclear program, which means Iranian oil will flood the global market. Iran could add as much as 500,000 barrels per day, further exasperating the oil supply glut. Dan Dicker, Senior Energy Analyst at TheStreet, tells Jill Malandrino that many analysts have had a 'non-plussed' attitude regarding the impact Iran could have on oil prices and they are just wrong. Dicker says exports are the reason why, not so much production. Exports account for 1.2 million barrels per day and that is really the number that matters because that is the amount that will hit the global supply chain, which already has a glut of 1 million barrels daily. In addition, it won't take much for a respooling of those exports to begin, and this is why Dicker thinks oil could get back into the lower $40s per barrel again.