Iranian Oil Back In Business?
One of the key parts of the “Iran Deal” is the large exports of oil and gas. This will have a significant effect on global markets.
Iran will ramp up crude oil production and reclaim its lost share of exports shortly after international sanctions on the OPEC member are lifted, Iran’s oil minister Bijan Zanganeh said on Tuesday.
Iran and six world powers agreed a deal in July to curb Tehran’s nuclear program, but sanctions imposed in 2012 will not be lifted until Iran has complied with all the terms of the pact.
Britain’s foreign minister said on Monday that international sanctions on Iran could start to be lifted as early as spring next year.
At a news conference in Tehran, Zanganeh said Iran should sell its crude regardless of the oil price.
OPEC has no immediate plan to cut its output target for crude, and Iran is strong enough to withstand a deeper slump in prices even if the country must sell at $25 a barrel, Oil Minister Bijan Namdar Zanganeh said.
“If the oil prices drop to $25 a barrel, there will yet again be no threat posed to Iran’s oil industry,” Zanganeh told reporters on Jan. 19 at a conference in Tehran, according to the state-run Fars news agency.
Brent crude traded below $49 in London on Jan. 19. Oil has fallen more than 30 percent since the Organization of Petroleum Exporting Countries decided on Nov. 27 to keep its ceiling unchanged at 30 million barrels a day. Iran isn’t seeking for OPEC to hold an emergency meeting, Zanganeh said. The group is scheduled to meet next on June 5.
Iran together with Venezuela has called for OPEC, which supplies about 40 percent of the world’s oil, to work together to support a recovery in crude. The U.S. shale boom has contributed to a global glut, and Qatar and the United Arab Emirates estimate the oversupply at about 2 million barrels a day. Iran is hobbled by international sanctions over its nuclear program and struggling for market share.
Brent crude, a benchmark for more than half of the world’s oil, has slid 15 percent this month and was 39 cents lower at $48.54 a barrel at 7:24 a.m. London time on Tuesday. Oil fell almost 50 percent last year, the most since the 2008 financial crisis.
Source: Bloomberg Business
We will occasionally bring you news and information about oil and gas. Our hope would be that these articles highlight the importance for continued oil and gas exploration in Israel with the goal of energy independence for Israel.