On Tuesday, President Donald Trump announced to the world that the United States will be withdrawing from the Joint Comprehensive Plan of Action, commonly referred to as the Iran Nuclear Deal. This move marks a split between the US and its European allies, notably Germany and France whose leaders have been urging President Trump fix the existing agreement instead of pulling out entirely.
While the implications of the United States withdrawing from the Iran nuclear deal are still unknown, the oil industry as a whole is watching ever so closely. The Trump campaign claims that sanctions are to be put back on Iran, which could limit the crude oil exports from their country.
One of crude oil’s heaviest uses is when it enters the refining process to create petroleum products people use daily, but let’s take a step back from the fuel aspect of oil, and take a look at other products that can be made from one barrel of crude.
This week, President Trump will make a decision on the Iran nuclear deal.
In 2015, a series of meetings were held between the Islamic Republic of Iran and a group of world powers: the United States, the United Kingdom, Russia, France, and China- plus Germany and the European Union. According to the agenda, Iran would redesign and reduce its nuclear facilities in order to lift economic sanctions. These sanctions cost the country more than $160 billion in oil revenue from 2012 to 2016 alone.