We are living in a world where sanctions against Iran have limited the volume of crude production from a major oil producing country and where, recently, Iran attacked two oil facilities in Saudi Arabia. However, there hasn’t been a significant increase in oil prices globally as the result.

This is in contrast to 2012 when oil prices shot up as high as $120 per barrel when initial U.S. sanctions against Iran were applied.
 
Jamie Webster, the senior director for Boston Consulting Group and fellow at Columbia University Center on Energy Impact, said during the U.S. Energy Information Agency’s (EIA) International Energy Outlook 2019 discussion on Sept. 24 that the latest lack of volatility can be attributed to how much more global the oil trade has become.

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