Analyst warns of Biden oil glut

Oilprice.com, a primary source for oil and energy news, warned before Tuesday's election that a Joe Biden presidency would cause a “huge new oil glut” because of his policies with Iran.
An official from Bahrain, an Islamic country that recently signed a peace deal with Israel and the U.S., warned that a Biden win could jeopardize peace deals in the Middle East in addition to flooding the market with oil.
“As if the oil market needed another uncertainty in the year of the pandemic, a Joe Biden win at next week’s U.S. presidential election could have a significant impact not only on the American oil industry but also on global crude supply within a year,” Tsvetana Paraskova, at Oilprice.com, argues.
In an op-ed published by CNN in September, Biden made clear his position: “There’s a smarter way to be tough on Iran” than President Trump’s hard line on the Islamic Republic.
“I will offer Tehran a credible path back to diplomacy. If Iran returns to strict compliance with the nuclear deal, the United States would rejoin the agreement as a starting point for follow-on negotiations.
"With our allies, we will work to strengthen and extend the nuclear deal’s provisions, while also addressing other issues of concern.”
Last month, Biden also pledged to phase out oil and gas production in the U.S., which drew criticism from many U.S. leaders, including Texas Gov. Greg Abbott, who represents the largest crude producing state in the United States.
“Using oil sanctions relief as a bargaining tool in 2021 is a bad idea because of how other regional exporters will react,” Karen Young at the American Enterprise Institute told Bloomberg News when discussing Biden’s approach, which is the opposite of President Donald Trump’s.
Last week, the U.S. Treasury Department imposed additional sanctions on Iranian actors, including the Iranian minister of petroleum, the National Iranian Oil Co. and National Iranian Tanker Co. and individuals and entities.
It also froze any U.S. assets of those blacklisted and banned all Americans from having any dealing with them.
Those blacklisted allegedly support the Quds Force, an elite foreign paramilitary and espionage arm of the Islamic Revolutionary Guard Corps, the Treasury Department argues.
“The regime in Iran uses the petroleum sector to fund the destabilizing activities of the IRGC-QF,” Treasury Secretary Steven Mnuchin said in the statement.