My constituents want cheaper petrol and diesel, and the biggest issue in price of these items is the base price of the commodity. The price per barrel of oil is key and the Middle East problems of Libya, Syria, Egypt and Iran - amongst others - have massively affected the oil price.
The immediate impact of the improvement in relations with Iran was a reduction in Brent crude oil as it fell by around $3 per barrel; the historic nuclear deal drawn up between Iran and the major world powers has eased oil supply worries. The deal curbs the Middle Eastern regime’s nuclear enrichment activities in return for a partial lifting of trade sanctions for a six-month period. It prevents Iran from enriching uranium to weapons-grade level, eases sanctions and affects us as consumers here in Northumberland and around the world.
The accord should unlock 800,000 barrels a day of global supply by next year in a market of 89m, rising over time as foreign firms return and the country’s ruined oil industry comes back to life.
The analysts Citigroup said the Geneva deal should cut global oil prices by $13 over time, enough to depress Brent crude below $100 and US crude below $85.
The reason for the agreement is becuase of nuclear weapon concerns. But the consequential benefit will be felt in the North East
