One of the next critical issues for crude oil will be whether or not the world will lift sanctions on the Iranian regime. The reason it is so critical is that while Iran has been thwarted from selling its oil, once the sanctions are lifted that the market has been pricing in, we should see a quick return of Iranian oil to the global market. But the deal may not get done and if it does would face opposition in U.S. Congress who argue the deal would allow Iran to continue its momentum toward developing nukes.
Accodding to the Associated Press, it seems that the United States is considering allowing Iran to "run hundreds of centrifuges at a once-secret, fortified underground bunker in exchange for limits on centrifuge work and research and development at other sites."
They AP says the "trade-off would allow Iran to run several hundred of the devices at its Fordo facility, (You remember Fordo, the secret site that did not exist?) although the Iranians would not be allowed to do work that could lead to an atomic bomb and the site would be subject to international inspections." (That international inspection thing seemed to work ok in Iraq, didn't it?)
The AP says, then, "In return, Iran would be required to scale back the number of centrifuges it runs at its Natanz facility and accept other restrictions on nuclear-related work. Instead of uranium, which can be enriched to be the fissile core of a nuclear weapon, any centrifuges permitted at Fordo would be fed elements such as zinc, xenon or germanium for separating out isotopes used in medicine, industry or science, the officials said. The number of centrifuges would not be enough to produce the amount of uranium needed to produce a weapon within a year, which is the minimum time-frame that Washington and its negotiating partners demand."
Yet some experts say the compromise for Fordo could still be problematic. They note it would allow Iran to keep technology that could be quickly repurposed for uranium enrichment at a sensitive facility that the United States and its allies originally wanted stripped of all such machines, which are centrifuges that can spin uranium gas into uses ranging from reactor fuel to weapons-grade material.
Saudi Arabia and other Arab Gulf allies cannot be happy with that arrangement as they continue to pond targets in Yemen. Egypt, part of the Coalition, said that they would send in ground troops along with Saudi Arabia which caused renewed strength late in the session.
Oil pulled back at one point due to the Genscape Cushing report. The firm reported that storage at the Cushing, Okla., facility hit 60,284,768 million barrels up 2,324,758 barrels from St. Patrick's Day.
Gas prices will be on the rise! Go fill up early!