What Happens If Iranian Oil Sanctions Are Lifted?

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Oct. 16 (Bloomberg) -- On today's "Global Outlook," Alix Steel reports on Iranian oil production. She speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

It is time for our global outlook and iran is in its second day of talks regarding its nuclear program.

What does iran really want?

Release from u.s. sanctions.

What is iran offering in return?

It is prepared to take confidence building measures by the second quarter of 20 42 but there are no details on what that means.

In theory, iran says anyone can buy oil.

Iran is still exporting about 1.2 million barrels per day and china is buying the ball.

In theory, if the sanctions were lifted, those companies could buy as much as they want and iran used to export 2.5 million barrels per day.

What is the procedure in washington if there is an agreement.

? here are the three options -- president obama can ask congress to amend the national defense authorization act that is renewed each december and holds the main oil export them.

President obama can do his own thing and grant a sanction waiver every six months.

Congress can reverse that.

President obama can turn a blind eye loosely enforcing existing sanctions so countries can continue to import iranian oil.

What does this wind up meaning for oil prices if we see a flood of oil coming online?

That could be very bearish for the market.

Oil prices could drop as much as $20. that is a big potential for a diop.

Thank you.

This text has been automatically generated. It may not be 100% accurate.

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