Mark today as the first day of Iran's comeback as a member of the global oil cartel. Not many folks are overly concerned, unless of course, you are Russya, Saudi Arabia, Iraq, Kuwait, Oman, Yemen, U.A.E., and Brazil. The world is awash in oil, and there's precious little space to store the surplus. Our friends in China who share a long, long border with the LARGEST COUNTRY IN THE WORLD(russya), apparently have no need for the world's surplus black gold. In fact, they plan to use less. The price per barrel slid under the benchmark $30./barrel on Friday and one could expect the slide to continue as Iran's oil hits markets tomorrow.
Now, the amount available is somewhere between 800K and 3.5 million barrels a day. The currency-starved Iranian economy will take some time to get back its regular footing, but, the aging Ayatollah is more concerned with fighting his own demons than the national balance of payments. His oil ministers hope the old goat stays out of the way as they hope to integrate the nation's production back into world markets. Europe could be an immediate beneficiary with Iran's price point on entry: perhaps as low as $22/barrel. Yes, Saudis are not worried about price points as they continue to pump at all costs as they scratch out market share to get the economy out of the red(Good luck, King Salman).
Journalist Jason Rezaiin is in Switzerland where he was taken after being freed in a prisoner exchange. He is ecstatic to be rid of the Iranian Theocratic-Ruled Nut House known as the Iranian legal system which is really extra-legal and largely illegal. But our focus is economics and oil.
So, the breaking wave will wash across the Middle East landscape, reducing national budgets and aggravate a situation pummeled by war, civil and otherwise. Mr. Putin, take note: you don't have enough oil to break into this cat fight among Arab oil producers. Take some advice: talk with China's Xi and make peace along your southern border; that's where your future lays.
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