Today’s Energy Minute brought to you by Commissioner Ryan Sitton of the Texas Railroad Commission:
How low are oil prices?
Did fears over Iranian production have an impact?
Said another way: If we took out the Iranian sanctions, what would prices have been this year?
Of course we don’t know for sure but here is one data point worth considering. At the beginning of the year, the Texas Railroad Commission office evaluated the market, and I (Ryan Sitton) announced that I expected WTI would hover between $58-$66 per barrel for most of the year barring a major impact from events such as Iranian sanctions.
So as we look back now, perhaps oil prices are not too low today but rather production fears skewed prices higher for the last few months and now they have begun to settle.
WTI lost $1.42 to end yesterday at $63.58 per barrel.
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