After what Israel calls a historic mistake the Iran nuclear deal really could open up a new front in the OPEC production war. We know that OPEC's main reason for flooding the market was to try to defend market share from the upstart U.S. shale producer. But the potential return of Iranian oil may actually turn OPEC's production war away from the United States and focus on Iran.
After a mixed performance on Tuesday the crude oil complex is higher across the board after a larger than expected draw reported in total crude oil stocks by the API late yesterday afternoon. The API reported a 2.9 million bbl draw in crude oil along with a 2.9 million bbl draw in gasoline.
U.S. crude production is at the highest level since 1986 and is on target to exceed 9 million barrels per day. Average price for Brent crude oil is expected to be about $18 a barrel lower next year than previously forecast."