BP: Iran Sanctions May Lead to ‘Extreme Volatility’ in Oil Prices
BP: Iran Sanctions May Lead to ‘Extreme Volatility’ in Oil Prices

BP: Iran Sanctions May Lead to ‘Extreme Volatility’ in Oil Prices

BP: Iran Sanctions May Lead to ‘Extreme Volatility’ in Oil Prices

Uncertainty surrounding Iran’s oil industry ahead of forthcoming US sanctions could prompt “extreme volatility” for oil prices, BP’s chief executive told CNBC Wednesday.

“I think it’s going to be 45 days of extreme volatility, it could spike up, it could also go the other way,” he told CNBC’s Steve Sedgwick in London.

Dudley’s comments come at a time when oil market players are closely watching what happens when US sanctions on Iran’s oil industry come into force on November 4.

It’s hard to be precise over how much of Iran’s production will be affected by the sanctions. It largely depends on whether the country’s oil-buying customers are afraid of secondary sanctions from the US if they do business with Iran.

BP’s competitor Total announced in August that it was pulling out of a giant oil and gas project in the Islamic Republic. But BP and Serica Energy were granted a new license Tuesday to run a North Sea gas field partly owned by Iran showing the US is willing to make some exemptions to the reach of the sanctions.

“If waivers were granted to others, to big oil consuming countries, you could see it (the price) go down, there’s a lot of uncertainty right now,” Dudley said.

Some analysts predict as much as 1.5 million barrels per day could be removed from the market, an event that could cause prices to rise further.

On Wednesday, Brent crude futures were trading at $84.96 per barrel while U.S. West Texas Intermediate was trading at $74.92.

Short URL : https://goo.gl/DJGw6C
  1. https://goo.gl/4hSKt2
  • https://goo.gl/D2ngyK
  • https://goo.gl/fxD9KJ
  • https://goo.gl/LXp5hw
  • https://goo.gl/PK7fsw

You can also read ...

India Co. Says ‘Important’ to  Buy Some Iranian Oil
Mangalore Refinery and Petrochemicals, a subsidiary of India’s...
Crude Prices Rise
Oil prices rose for a fourth day on Wednesday after industry...
NIOC Chief: US Talk to Zero Iran Oil Export Is Hot Air
Rhetoric from the United States that it wants to reduce Iran’s...
NOPEC Threat Prompts Change at OPEC
OPEC has urged its members not to mention oil prices when...
Foreign Firms to Invest in Mazandaran DGs Power Projects
Foreign companies have signed contracts to invest in small...
Iran's Marjan Petrochem Company Exports 1st Methanol Cargo
The first 20,000 ton methanol consignment produced by Marjan...
Russian Expert: Collaboration With Oil Majors Could  Help Iran Enhance Energy Output
Iran has proved that it has great potential for investment...

Add new comment

Read our comment policy before posting your viewpoints