Iran's floating oil stockpile for sale at worst time for market
Iran has been carefully planning for its return from the economic penalty box by hoarding tons of oil in tankers at sea. Now that the U.S. and European Union have lifted some sanctions on Iran, the OPEC country can begin selling its massive stockpile of oil.
The sale of this seaborne oil will allow Iran to get an immediate financial boost before it ramps up production. The onslaught of Iranian oil is coming at a terrible time for the global oil markets, which are already drowning in an epic supply glut.
Crude oil prices crashed below $30 a barrel last week as Iranian sanctions relief loomed. Now that it's official, oil remains under pressure, sinking below $29 a barrel on Sunday evening.
"The oil markets are already flooded. It's like you've already had 16 inches of rain in a flood zone, and now you're getting a few more inches," said Tom Kloza, global head of energy analysis at the Oil Price Information Service. (by Matt Egan, CNN)