International trade sanctions have been lifted against Iran which means the country will be exporting crude oil into an already oversaturated market.
So what will than mean for already slumping crude oil prices?
Senior petroleum analyst Dan McTeague says Iran is chomping at the bit to begin flooding the market with more crude oil.
He says, “Any way you slice it, there’s 300, 000 to 500, 000 barrels coming on the International market globally sometime soon. They have 25 vessels filled with oil. We don’t don’t know how much is in those, but they’re ready to be deployed.
McTeague says an oversupply of oil in the market continues to be bad news for Canada’s economy, “In Canada, we rely on crude as a benchmark price for trade. The loonie has taken a hit, but because we price all of that fuel in U.S terms, we don’t quite get the benefit of those lower prices at any given time.”
McTeague expects this will have a bear-ish impact on crude oil and will likely mean even lower gasoline prices for drivers.
