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Riots in Iran could lead to higher oil prices

Just as everyone planned a better vision for the New Year, demonstrations of Iran's anti-government  continued to be fermented, causing multiple deaths and was considered the worst crisis in the country in the last ten years. Iranian officials linked this large-scale protest with "U.S. intervention," believing that Trump's external "agitation" is an important reason for thestart of the protest. However, the western media considered Iranian conservatives as "behind the scenes" in this mass protest. Regardless of the reasons, the world economy has always been affected whenever there is instability in the major petroleum producing countries. As one of the most important oil producing and exporting countries, Iran's current instability in the domestic situation must have a significant impact on the oil market. Iran, one of the largest oil exporters in the world, has gradually recovered its oil output after the EU ended its 10-year sanctions. At the same time, the end of Iran's decade-long economic sanctions has stimulated the country's oil production and there's room for further improvement. Saudi Arabia and Iran, have always been the opposite. As the top oil exporting country, Saudi Arabia does not want to see any increase in Iran's oil output to push down the oil prices, no matter from what point of view, especially when Arabian American Oil Company starts an IPO. For Russia, which is heavily dependent on the oil economy, an increase in Iranian production may make it difficult for oil prices to reproduce the steady rise in 2017 in the future, which is not good news as Putin needs more money to manage his government, especially in the electoral year. And the interest of the United States is particularly evident. Put aside other frictions in all aspects, alone in the Asian energy market, it faces the "one mountain cannot be two tigers" situation. After the United States gradually achieved its energy independence, the United States increased its penetration in Asian market. And Asia is also one of Iran's key clients.

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