Iran-Saudi row unlikely to raise oil prices

The year 2016 for the Middle East began with the political crisis caused by the arrest and execution of Shiite cleric Sheikh Nimr al-Nimr in Saudi Arabia. Apart from intensifying tensions between Saudi Arabia and Iran, al-Nimr's execution and its aftermath also raised concerns in entire Persian Gulf region.

Even if Iran-Saudi Arabia confrontation continues, oil prices are unlikely to rise.

Economic and political fundamentals will determine oil prices this year, and the "bearish" oil market will continue for some more years, although prices in the international market are rising in the short term.