Following President Trump’s decision to withdraw the United States from the JCPOA, the response of Iran, Europe, Russia and China over the next several weeks will be closely watched. The U.S. and Europe are likely to continue discussions regarding joint action on Iran and the imposition of secondary sanctions on European companies. Whether China, Russia and, one day, Iran can be brought back to the negotiating table will depend on statements, actions and likely exogenous events over the wind down period.
After pressure from the investment community, many US independent Shale producers aggressively hedged 2018 production in 2017 in order to ensure or slightly improve their capital position. Those hedges are now limited the upside of US Shale Producers. Please read ESAI Energy’s Elisabeth Murphy’s interview with Energy Intelligence’s Deon Daugherty.
As expected, President Trump withdrew the U.S. from the nuclear agreement and re-imposed sanctions on
Iran and companies that do business with Iran. This includes companies who buy crude oil from Iran. This
could reduce Iran’s crude exports by about 300,000 b/d by late this year – a significant volume, but not as
large as press reports have indicated.