Word is coming down the wires today that Iran has ruled out cooperating on any potential oil production cutbacks until its own oil production returns to pre-sanctions levels. WE are talking about approximately another 1.5 million barrel/day rise from their current levels.
Prior to the sanctions, Iran was producing about 4.2 million barrels a day. Now they are at closer to 2.7 million.
That essentially negates the positive impact that might have resulted from the idea floated by the Russians yesterday of an overall 5% reduction that would be discussed in an upcoming February meeting.
Crude oil had been strongly higher all session long on the heels of the BOJ liquidity boosting measure but surrendered every bit of those gains once the Iranian oil official started yapping.
This post was published at Trader Dan on January 29, 2016,.
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