How the U.S.-Iran Deal Put A Higher Floor Under Oil Prices

AI Summary

Analysts expect a substantial oil glut next year, following the U.S.-Iran deal which helped ease the Middle East crisis. The reopening of the Strait of Hormuz and return of over 13 million barrels per day in oil production will likely support global oil prices for months, assuming the deal remains stable.

Analysts are back to expecting a huge oil glut next year as they see the U.S.-Iran deal as the end of the worst of the Middle East crisis.    The deal is actually just the beginning of long processes of negotiations, a reopening of the Strait of Hormuz, recovery of the more than 13 million barrels per day (bpd) of shut-in oil production in the Middle East, and a world so low on inventories – except in China – that refilling these will support oil prices for months to come. If the deal holds. Every assumption about global oil…