This is a syndicated repost published with the permission of Money Morning. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
There’s a bombshell new development in the Iran nuclear deal.
Yesterday (Wednesday), the Associated Press (AP) reported that Iran will be permitted to use its own experts to inspect Parchin – one of the country’s most suspicious testing facilities. Parchin has been tied to nuclear weapon testing more conclusively than any other site in Iran. According to theAP report, the facility is where detonators for a nuclear bomb may have been tested back in 2003.
The revelation of this “secret agreement” has enraged Israeli and Republican critics. They consider it Iran’s move to ensure the nuclear dealwill not be carried out effectively. They’ve long held the belief that the deal is built on trusting Iranians, a notion President Obama has denied.
“This deal is not built on trust,” Obama said in a press conference after the landmark agreement was reached. “It’s built on verification.”
The Iran nuclear deal was reached on July 14. It will prohibit Iran from conducting nuclear weapon research. In exchange, various economic sanctions on the country will be lifted, most notably the oil export ban.
Investors are worried Iran will flood the already oversupplied market and send oil prices into an even deeper hole. With WTI oil prices currently near $40, Iranian exports could be the breaking point that sends the energy market toward an unprecedented crash.
But according to Money Morning Global Energy Strategist Dr. Kent Moors, Iranian oil won’t hit the market that quickly. By the time it does, oil will have fully restabilized…
How Will the Iran Nuclear Deal Affect Oil Prices?
Crude oil prices will start to rebound within the next year without any drawbacks from the Iran nuclear deal. That’s because it will take at least 18 months for Iranian oil to hit the global market.
You see, even if Iran conducts its own inspections of Parchin, there are a dozen other sites that will be inspected by the International Atomic Energy Agency (IAEA). These UN-sanctioned checkups will ensure Iran is abiding by the deal and scaling back its nuclear research.
Iran obviously doesn’t agree with the inspections. The country argues that IAEA inspectors are spies working for Iran’s enemies. That hardened attitude will result in delayed inspections and – in turn – delayed oil exports.
“It’s all in the hands of the West,” Moors noted. “There will certainly be benchmark requirements in place that Iran will have to meet and verify before any oil is exported. So the relaxing of sanctions will occur over time.”
By the time Iranian oil hits the global market, U.S. oil prices will be back at normal levels.
Keep reading to see how high Moors sees oil prices going and how to profit from this rebound…
To get full access to all Money Morning content, click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The post What the Iran Nuclear Deal’s “Secret Agreement” Means for Oil Prices appeared first on Money Morning. Reposted with permission.
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
