Tipping Point for Oil Prices

Strong demand for world oil and a delicate political balance with the Iran nuclear talks may be the tipping point for oil prices. In the U.S. oil prices have stood at $57-62 per barrel since April. The June 30 deadline may put 1 million of Iranian reserves on the market this summer. ”Should negotiators reach a deal for Iran to end its nuclear program, in addition to the increase in production, Iran could unleash an estimated 30 million to 40 million barrels of oil it now stores on tankers. Oil prices could immediately fall by several dollars if a deal were reached." The talks appear to be delayed, and no oil may be released until late in 2015.