More Iranian Oil Could Hit The Market Now That Iran Deal Is Assured
The deal will give international nuclear weapons inspectors access to Iranian nuclear facilities, and freeze nuclear activities for 10 years. In exchange, Iran will see sanctions relief.
That could lead to the revival of Iran’s oil industry, potentially allowing Iran to ramp up oil production and exports. Estimates vary, but Iranian officials are making ambitious statements about its comeback. Iran’s oil minister Bijan Zanganeh has said that his country will be able to ramp up oil production by 500,000 barrels per day immediately after international sanctions are removed, followed by an additional 500,000 barrels per day not too long after that.
“We should sell our oil whether the price falls or goes to $100 (a barrel). Even though we would like to sell our oil more expensively, the price is determined by the market,” Zanganeh said last month. “After lifting sanctions, Iran will take back the market share of more than 1 million barrels a day that it lost,” he said. (by Charles Kennedy, Oil Price.com)