The International Atomic Energy Agency (IAEA) is expected to release its report regarding Iran’s compliance to curb its nuclear program, possibly at the conclusion of today’s meeting in Vienna. The report is expected to pave the way for Western sanctions, including oil exports, to be lifted. There are concerns that these additional Iranian barrels will worsen the existing oil glut, with some figures showing that Iranian exports may rise by 21% to 1.10 million bpd.
Although WTI crude fell below $30/bbl again to $29.39, Goldman Sachs is not moving its prediction that it will average $40/bbl in the first half of 2016. This is not in alignment with many other energy experts who expect that the average will be under $20/bbl within the same timeframe. The market shows support for the latter view.
Stock markets rebounded globally yesterday, with crude following suit, but have since reversed.