The USA seems to feel some external-policy shock after Russia managed to persuade Syria to get rid of chemical weapons, thereby canceling a US-led military campaign against Asad and its army. The US “educational” policies are now off the rails and have to be reconsidered.
President Obama is reported to have restored the dialog with Iran and is said to be going to promote the cancelation of all the sanctions imposed on Iran. If the sanctions are cancelled, what will be the impact on crude oil prices worldwide? Let’s ponder on this question together with Masterforex-V Academy…
Will Iran and the USA Make Friends?
If you don’t know the fact that Obama wrote a letter to President of Iran Hassan Rouhani a month ago, you might think that this is some kind of domino effect (i.e. after conceding defeat in the Syrian issue, the USA decided to neglect its external policy in general).
Still, it appears that the “unexpected” Russian plan on Syria wasn’t as unexpected as one might think. Obviously, we cannot see the entire big picture of all the peanut politics but a change in the relations between the USA and Iran are obvious. Even if there is no further advancement in those relations in the near future, it is enough reasons to call it a new stage in those more-than-complicated relations. What can this new stage be?
At this point we know the following:
Obama wrote a letter to the new President of Iran and offered him to keep the promises given within the scope of cooperating with the international community in exchange for a sanction-free Iran. Even though the letter doesn’t sound too optimistic, it is has a constructive and well-wishing tone.
The Iranian president underlines that Iran’s nuclear program has nothing to do with nuclear arms.
Obama calls a relief in the Syrian issue as an opportunity to resolve the Iranian nuclear issue as well.
On September 20th, Obama’s administration announced that the White House is ready for nuclear talks with Iran on condition that Iran can prove the purely peaceful nature of the Iranian nuclear program.
It seems like the USA is really going to make it up with Iran.
Crude Oil
Some experts say that the major reason why top-ranking US politicians have changed their minds on Syria and Iran is crude oil. They say the USA needs lower oil prices. One of the reasons for that is the necessity to undermine Russia’s economic stability (since Russia is a major oil and natural gas exporter and its economy is based on those exports).
Since Monday, crude oil prices have been going down again. Apparently, the major reason is the fact that investors are less concerned about a possible US-led military operation in Syria, which may destabilize the situation in the entire Middle East. Another reason is a production increase in Libya.
The price of November futures on Brent Crude Oil is down by 1,58% to 103,59 per barrel. The price of October futures on WTI is down by 0,49% to 104,23 per barrel, Masterforex-V Academy reports.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of WTI:
