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Perception is Reality for Iran Impact on Energy Markets

August 1, 2009

Analysis of:In Tehran, a Symbol Is Ready to Reappear | www.nytimes.com

Following the disputed June 12th Presidential election in Iran, the political "crisis of confidence" and the use of force by the government to suppress popular dissent, has not yet impacted the Iranian oil sector or oil prices. Iranian actions that impact domestic production could quickly be make up by existing excess capacity within OPEC. However, depending on the severity of the political crisis, oil speculation could artificially impact the price, as it did during the Iran crisis in 1979.

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