The past month has been a tumultuous time for the Persian Gulf region, one bound to send shock waves through global markets, not least the international oil market. While it is still far too early to detect a building tidal wave, that cannot be entirely ruled out. The confluence of potentially ground-changing events taking place in recent weeks in and around the oil-producing Middle East heartland, culminating in regime change in Saudi Arabia, has been extraordinary. In one way or another, each seemingly disparate link in the recent chain of events may be connected not only to each other but also to oil. First, on May 19, came the landslide re-election of Iranian President Hasan Rouhani. The largely unforeseen groundswell of popular support for the politically moderate cleric, in the face of hardline opposition, signaled a grassroots desire for change and for dismantling confrontational barriers that for years have served to isolate Iran. To sustain that throughout his second presidential term, Rouhani must now deliver on pledges to attract more foreign investment and technical expertise to Iran’s petroleum sector. Consequently, the country’s petroleum ministry is gearing up for the long-awaited award of the first development contracts under Iran’s new contract model for
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Source: CTRM Center