Though Iran plans on pumping more oil out of the ground after some sanctions are lifted, don't expect that to bring down oil, says one strategist.
Iran is going to pumping more oil once sanctions against that country are lifted. Yet, despite the potential for more supply, crude oil prices are up in the past week.
CNBC contributor Andrew Busch, editor and publisher of The Busch Update, says the real story is more about demand than supply.
"Global demand is going up because the global economy is doing better," says Busch. "When you have an event such as Iran saying it will pump as much as possible and they don't really care what OPEC says about it, and you watch the price of oil go up, you know something else is at play."
And, Iran may not be able to increase its share of OPEC's total output, currently at 30 million barrels per day.
"Iran pumps about 2.7 million barrels a day," notes Busch. "They say they want to get up to 4 million butRead More »from Here’s why oil is going up: Strategist