Jinjoo Lee, Wall Street Journal, suggests that oil companies might feel the new administration (not official yet?) first through foreign policy:
”…a more pressing near-term threat could stem from foreign policy. Mr. Biden favors returning to the 2015 Iran nuclear deal—a move that could bring the major oil producer sanctions relief. According to a research note from RBC, the White House has authority to issue enforcement waivers on sanctions without Congress if it certifies that Iran is meeting its nuclear deal obligations.
A move to sanctions relief could bring as much as a million barrels a day of supply, or about 1% of global production, back to the market in the second half of 2021, RBC notes. A research note from Morgan Stanley figures that number could be as much as two million barrels a day, though likely not all at once. There are many moving parts in the global oil market, but such a big addition to supply would harm private energy companies across the board.”
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