Will Low Iranian Oil Supplies Trigger Higher Prices?

Will Low Iranian Oil Supplies Trigger Higher Prices? That’s been one of the big questions as an embargo on Iranian Oil from EU nations is soon set to take place.  The embargo comes as Iran has already unilateraly decided not to ship oil to those countries.  Overall, Iranian supplies have dropped by 14%.  So far, the drop in supply has been made up by other oil producing countries. However, as talk of more sanction against Iran has heated up, Oil traders expect Iranian output to continue to decrease with the potential of higher prices.

Barclay’s Capital Loves Oil, Do You?

In a research report, Barclay’s Capital was out with positive research notes for oil prices for the remainder of the year.  The investment bank expects prices to remain strong as oil benefits from low spare capacity, geo political issues, and rising economic growth.  

Apart from oil, Barclay’s also expects precious metals prices to do well overall as demand remains strong for commodities.   Apart from commodities, Barcllay’s continues to recommend lowering exposure to Europe as its ongoing credit crisis could hamper investment results.