Analyst: Iran's oil industry won't suffer big from oil price drop
TEHRAN,Iran, May 20
Iran's oil industry will not be significantly affected by the oil price crash, Iranian energy and oil market analyst Mahmoud Khaghani told Trend.
"The oil price was negative in May, and that caused uncertainty between energy experts. In general, the global stock markets do not always show real prices and big investment groups manipulate prices to create conditions for producers and consumers and gain profit," he said.
"There are special people inside the exchange that change the destiny of stocks they have inside information on," he added. "Also there are normal people and outsiders that usually are not away of the trades precise information so their transactions become risky," he said.
"The outsides are stuck in a trap, as insiders don't buy oil and everyone else are forced to sell it for cheap, so a lot of money was lost. So after all this, the control over stock market was tightened, and investigations were launched on the so-called insiders," said Khaghani.
According to him, the regulations launched in recent weeks would stop trades if prices increase to certain levels.
"The increase of oil price naturally was not due to rise of demand since there are no flights or road movement going on due to COVID-19, but the stock market rumors claim the quarantine will be over soon," he added.
Khaghani said the news on Iran's fuel shipment to Venezuela and the possible conflict with the US, affected the market, as promises of higher oil prices started to appear.
"The increase of oil price is merely a speculation for next several months," he added.
"There is no significant demand for oil consumption at the moment," he said.
"It is not expected that demand would rise dramatically in next two or three months not until the situation with COVID-19 calms down," he said.