How much spare capacity does Iran have?
Reuters reports, citing ship-tracking sources, that Iran's oil exports rose 450-500k barrels per day in April. That's a gigantic increase and brings total exports to 1.18-1.3m bpd.
It's bearish news for oil. Once the nuclear deal if finalized, Iran has a glut of oil to bring to market. It's more than enough to make up for falls in US production, which isn't declining as fast as market watchers believed.
More Canadian oil coming to market
In addition, Canadian oil export volumes rose to a record high in January. Canada exported 3.11 millions of barrels of oil a day in January, 12.8% higher than the same year-ago month and 80% higher than five years ago.
That's just the tip of the iceberg with Husky Energy Inc., Cenovus Energy Inc. and Canadian Natural Resources Ltd. all with major oil-sands projects expected to come online this year.
Where is oil heading
Fundamentally it sounds negative but technically, the blueprint is to go with a break of this wedge. A falling dollar is certainly good news for oil (although you could also argue that a soft US economy is bad for demand).
Oil daily
