According to Damien Courvalin, the Head of Energy Research at Goldman Sachs, the Nuclear Deal with Iran may boost the oil prices even if there is more supply of Brent Crude in the oil markets. Damien Courvalin, also a senior commodity strategist at a multinational investment bank, said that even if the deal would bring Iranian barrels back to the market, the process will soar.
He told the media that there are high-level talks ongoing in Vienna as Iran and all the other six world powers, Germany, U.K., France, Russia, China, U.S., are trying to salvage the landmark deal of 2015. According to officials, the talks have progressed, but the negotiations will remain unclear until it concludes. This has resulted in higher fluctuations in the oil prices says Mr. Courvalin. The 2015 landmark deal may remove sanctions imposed by the U.S. on Iran. This will bring Iran and the U.S together.
The countries can then act according to the Joint Comprehensive Plan of Action (JCPOA). standards The U.S in 2018 unilaterally withdrew from the Nuclear Deal and reimposed sanctions on Tehran, resulting in the increased oil prices of the Islamic Republic’s oil exports. According to Mr. Courvalin, if the final announcement on the deal comes in the next few weeks, it would result in a bullish repricing.
However, many analysts disagree with his statement. The analysts say the deal will drop the prices of oil in the short term. According to a research note released by Morgan Stanley, the increase in the exports of Iranian oil will cap the price of the Brent crude at $70 per barrel. He anticipates that international trade will be between $65 and $70 in the second quarter of 2021.