Iranian oil may soon be flooding the market and giving the Eagle Ford producers a run for their money.
Last Saturday the new arrangement between the U.S. and Iran went into affect that would free the country from international sanctions that were imposed in 1979.
The International Energy Agency says that Iran has about 38 million barrels of oil in reserve that can enter the market quickly at a rate of 400,000 to 500,000 barrels a day.
Some speculate that the recent decline in crude prices to below $30 is a reaction to the anticipated deluge of oil from Iran and there are predictions of barrels going for $20 soon. But now everyone believes that the Iranian oil will affect prices.