More Oil in The Middle East

By | June 6, 2018

Syria, Lebanon and Cyprus do not usually come to mind when talking about oil. But it seems they have found their fortune as well.  

Oil conflicts start again the the region.  غاز شرق المتوسط فرصة للتنمية أم شبح حرب كارثية

توقيع المرحلة 3 من برنامج النفط للتنمية النروجي

These are huge discoveries that will bring money to these countries, allow them to supply Europe with gas reducing the dependence of Europe on Saudi and Russian oil. This will also drive the oil prices down. Oil is going to be mostly for transpiration from here on.  With the electric cars become more and more popular, that is also going to put a lid on oil prices. From here on, $80 is going to be most likely upper bound of Brent oil.  

Contracts are going to European companies by the way. Even in Iraq, the new exploration were awarded to national and Chinese companies (عقود تنقيب جديدة عن النفط في العراق), not American.  

China and USA cost of production is going to be the lower limit on oil prices assuming a stable world. So as far as Brent, sell over $70 and buy below $60, as simple as that. 

 

Category: Oil

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