Barrelling on

Investment in new oil production will also impact oil prices in the coming days.

“Global investment is uncertain and we don’t know how many countries are going to invest in the new production. The US Energy Secretary Rick Perry is talking of a joint investment fund with Saudi Arabia and Russia to increase global investment. If that happens, the price will stay in the $80 per barrel range,” Jaafar Al Taie, managing director of the UAE-based Manaar Energy Group.

“There is not necessarily going to be upward price movement because of sanctions on Iran, the equation is not that simple. The main drivers will be one: the amount of Iranian oil taken off the market, two: US supply and three: the level of investment in new production.”