Energy Report: Reopen!


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Oil prices hit the highest level since 2018 as the global economy reopens, global inventories fall. OPEC Plus is having its virtual meeting today planning to increase output at a lower rate than the market is asking for because they just assume Iranian oil is coming back on the market.  Yet reports suggest that Iran is already not complying with weapon inspectors and there is information coming out that could make an Iranian deal impossible.  In the meantime, global demand is rising, and the world is more than likely headed towards an oil supply squeeze. Demand is recovering faster than supply as U.S. Rig counts rose only 3 last week and crude oil inventories are falling. 

The AP reports that The United Nations’ atomic watchdog hasn’t been able to access data important to monitoring Iran’s nuclear program since late February when the Islamic Republic started restricting international inspections of its facilities, the agency said Monday. The International Atomic Energy Agency reported in a confidential document distributed to member countries and seen by The Associated Press that it has “not had access to the data from its online enrichment monitors and electronic seals or had access to the measurement recordings registered by its installed measurement devices” since Feb. 23.

While the IAEA and Iran earlier acknowledged the restrictions limited access to surveillance cameras at Iranian facilities, Monday’s report indicated they went much further. The IAEA acknowledged it could only provide an estimate of Iran’s overall nuclear stockpile as it continues to enrich uranium at its highest level ever.

Reuters reported that Iran has failed to explain traces of uranium found at several undeclared sites, a report by the U.N. nuclear watchdog showed on Monday, possibly setting up a fresh diplomatic clash between Tehran and the West that could derail wider nuclear talks.

If OPEC Plus stays on course and Iran oil's comeback is delayed that should get WTI oil solidly above $70 a barrel. Brent already is above $70. $70 may then try to establish as a floor once we break out of that level.

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