“The Iranian nuclear agreement is a severe blow for short-term fundamentals in the oil markets. This has the potential to push prices closer to $50/barrel. Although it remains unclear how much Iranian oil will be exported, there simply isn’t enough demand to absorb it – the market is already over-supplied.
“With OPEC pumping well-above the 30 million barrels per day (mbpd) quota coupled with lacklustre demand from China, things are looking pretty bearish right now.
“In the coming weeks OPEC will come under mounting pressure to cut production as the introduction of Iranian barrels will only exacerbate the global demand-supply imbalance.”
- ENDS -
Simon Chan, KPMG Corporate Communications
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.