Iran deal sends oil lower, lifts shares and dollar

(Reuters) - The historic deal to curb Iran's nuclear program prompted a dip in oil prices on Monday and buoyed world shares as investors priced in an easing in political tensions and the lift it may give to global economic growth.

Negotiated by six world powers and Iran over the weekend, the deal halts Iran's most sensitive nuclear activities and gives it some relief from crippling sanctions, but does not allow the OPEC member to increase oil sales for six months.

Despite tough work ahead to transform the agreement into a permanent solution, it was enough to ease oil supply fears and send Brent crude down $2.15 at $108.90 in European trade after it had earlier slid $3 to hit a low of $108.05.

"What prices are mostly reflecting is a lack of geopolitical risk premium," said Barclays oil analyst Miswin Mahesh."We would have expected a $3 to $4 a barrel move. We did not get that because... you're not seeing additional barrels coming into the market," he said.

It may sound like risk but, the risk is to the investor who gets stuck with high priced oil that can be undercut by the new boy in town…Iran. There will always be turmoil. There will always be oil supplies. There will always be speculators working on keeping the price high. There will always be the clever guy who will sell low and still make a bundle.

Obama’s “Syrian conflict” not panning out, along with a weak hurricane season in the US, didn’t give all the big oil manipulators the huge pay-off they were looking for this year. But, even with new Iranian oil coming back into the mix, I’m confident the manipulators can still find a way to get gasoline back to $4 a gallon soon.  There’s no way the rich 1% can afford to ease up on gas prices or let wage increases happen for the working poor and middle class, because that would spark inflation risks to the broader economy…which then means QE 4,5,6,7,8, etc. (free, easy money printing at the FED) would have to come to an end. 
And we certainly can’t have that.