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Sameer Kalra

End of The Road or A Pit Stop ?

For a few months every day, the price of fuel has been on a rise, and customers coming to fill the tank are paying higher more frequently than before. This is creating concern for every government and they trying to find all possible solutions to reduce the cost. The recent sanctions and other blockades on Russia have done the opposite and resulted in adding fire to fuel.


The only possible solution from such high prices is to bring a large amount of new supply that can match the demand and cool off the speculation of a larger mismatch ahead. But for this OPEC+ and USA-based producers are not able to provide instant relief as the decoupling between the West and Russia has left even the most optimistic growth estimates in dark.


In all this, the most instant solution is the Iran oil through JCPOA deal that was signed in 2015. It will be one year in April since the Vienna discussion has been started and this will be the most perfect time to bring millions of floating oil to the markets and help reduce the price.


Till March 3rd it did look ready to be finalized and signed with markets anxiously awaiting the headline. But as always there was a twist and as the draft document said "nothing is done till everything is done". The twist was introduced by Russia that sanctions should not have an impact on relations with Iran. And Iran has close relations with Russia was surely willing to play along.


Now there is a "break" with finalized text prepared but no one to sign and there are barrels of oil available but no one can buy. Hopefully, the break does not impact the momentum achieved till now as the world with $100/bbl will surely bring crisis and stagflation.

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