In recent days, oil has continued to accumulate new sanctions against Iran, with investors completely ignoring OPEC+ intentions to increase volume by up to 1m. barrels per day. At first glance, sanctions with Iran appear to be a very solid foundation for oil, but Iran's real oil will remain on the market, and the price should fall. Where is the problem then, and why do we observe this steady growth?
It seems that the problem is rooted not in OPEC+ or Iran, but in Canada, Kazakhstan and Libya, countries that have a small share of the oil market. Only two weeks ago the three countries in question were not included in the list of countries of which they could be of concern. Over the last 14 days, however, the yields of Libya, Canada and Kazakhstan have dropped drastically, fully covering OPEC+ efforts to increase yields.
Source: Bloomberg Pro Terminal
Chart: Used with permission of Bloomberg Finance L.P.
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