The 57^th US Presidential elections that is set to take place in November this year will see  Democratic Barack Obama  and Republican  Mitt Romney fight hard for  the presidential chair in the White House.  The election dates are around the corner and Obama seems to be all tuned up with his democratic cape on against the mighty republicans. By extending new sanctions on Iran, he might just have thought that it could make him win the confidence of the American public ultimately making him the US president for a consecutive year.

Could it be considered mere luck to Obama’s government that despite putting sanctions on the third largest oil producer of the world and cutting out supplies, prices have not seen a drastic spike but rather lowering of prices to 1.3 percent than what it was in March when Iran had threaten to disrupt its oil supply through the Persian Gulf that sent crude prices to a three year high? However increased production of oil in Saudi Arabia, oil output boom in the US, economic slowdown in major global nations like US and China and above all the increasing trauma for the Euro Zone’s debt crises somehow has put pressure on the oil prices from hitting any spikes regardless of the Iranian  oil sanction.

With OPEC’s number one producer, Saudi Arabia, producing 22 percent more than what it was producing in 2010, it has been able to pump more than 10 million barrels a day to fulfill the global demand. The US on the other hand is paying 4.6 % less on imported crude due to its own domestic fields producing oil that has been highest in last 13 years. 

Certainly it’s only Iran that is losing out from the sanction this time. Its oil supply has come down from 2.43 million barrel to just 1.2 million barrels a day accounting a loss of $133 million per day beginning from July 1. Now with extended sanctions from the US congress that will put a stoppage to companies supplying commercial goods and financial services to Iran, it will only make things worse to this so called nuclear threat to the world as portrayed by the US.

However things would not have been rosy as they seem now despite imposing sanctions over sanctions upon the Iranian regime. It could have made oil prices go up rather than going south had there not been any positive signs coming from the US and Arab supplies. So the question that stands aloof is whether the sanctions were taken under high risk or whether they were based on highly calculated judgments!

 Note: The blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred.