Energy OverView April 7, 2015

WTI prices spiked higher, yesterday, on several positive elements. The Iran nuclear deal is the latest political football, in both the US and Iran, where hardliners in both countries want nothing to do with each other’s country. Oil prices fell ahead of the deal, on hopes that lowered tensions and even more oil would work to lower prices. The reality, of course, that easing of the sanctions further is not instantaneous. However, we point out that Asian buyers, especially China, have been eager to buy Iran’s oil. China currently buys half of Iran’s output, while Japan and South Korea have raced to increase their allotments.