Posted in: Gas Prices,
by Patrick DeHaan on Nov 25, 2013 09:58 AM
After a major breakthrough with Iran over the weekend, the major question is what impact will this have on oil prices? The answer: it could cause the recent uptick in prices to reverse course completely.
Oil prices opened the week notably lower, as traders reacted to the news that perhaps Iran's oil will be back on the table in the future, pending agreements to curb the serious sanctions plaguing Iran, resulting in a crippling grip on its oil program.
If Iran and the West can ultimately come back to the table and agree on a longer term resolution, there could be a lasting affect on oil prices. The fact of the matter is that Iran holds a sizable chunk of oil production. With the United States producing oil domestically at rates not seen in decades, with Canada also pumping as much as infrastructure allows, adding Iran's oil back to the table really could hammer prices.
And the end result could be a major one for Americans, with a reversal in the recent climb of gasoline prices, with the potential for long term prices to be markedly lower than the past few years which have seen yearly averages north of $3.50/gallon.
For this week, gasoline prices may increase slightly for the early week, with the exception of the Great Lakes where prices are falling after spiking last week. For the rest of the nation, prices should cease climbing and at least for now reverse.