Another day, another low in the oil price. On Tuesday, WTI crude hit $42.63, a fresh cycle low, on the news a nuclear deal between the United States and Iran might be in the offing. If a deal goes through, it could result in 1 million barrels of oil per day could flood the market within a couple of months.
WTI Crude:
Source: tradingeconomics.com
These are interesting developments, both from an economic and a political front.
If Iran reduces or rolls back its nuclear program, this means some economic sanctions on Iran could be lifted, which prevented the country from exporting more oil during the past few years.
Beggars can't be choosers at a time when the oil price is already low.
