It will have a large impact on the WTI/Brent spread since Venezuela produces a very heavy grade oil. It should affect WTI more than Brent. Iran on the other hand will likely affect Brent more than WTI. So both events have huge spread implications. I would argue the summer demand for Gasoline will impact flat price more for WTI in general. Supplies are already tight, we know that. Just how much demand we are going to have is still uncertain.
Oil Prices and the Cancellation of the Iran Deal
- Thread starter bone
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It will have a large impact on the WTI/Brent spread since Venezuela produces a very heavy grade oil. It should affect WTI more than Brent. Iran on the other hand will likely affect Brent more than WTI. So both events have huge spread implications. I would argue the summer demand for Gasoline will impact flat price more for WTI in general. Supplies are already tight, we know that. Just how much demand we are going to have is still uncertain.
It sounds like it matters who wins the election. They are supposedly sitting on the world's largest proven reserve. From the chart below, it would appear they could produce a lot more if the right government was in place. I imagine the world's oil traders will be watching. Figured you'd know.
It's junk oil though. Very heavy, very dirty. It trades at a huge discount to both WTI and Brent. It matters, but not as much as people think. I'm sure it's more psychological than anything else with prices where they are now.