Report: Iran to Export 730K More Barrels of Oil after Sanctions Lifted
TEHRAN (Tasnim) – Iran could export 730,000 more barrels of oil per day from the current levels soon after a finalized text of the conclusion of nuclear talks between Tehran and six world powers is implemented and anti-Iran sanctions are removed, a report said.
“Iran’s oil output could increase by as much as 730,000 barrels per day (bpd) from current levels fairly quickly after sanctions are removed,” the International Energy Agency (IEA) said on Wednesday, Reuters reported.
"While significantly higher production is unlikely before next year, oil held in floating storage – at the highest level since sanctions were tightened in mid-2012 - could start to reach international markets before then," the IEA said in a monthly report.
Also according to a report published by The Hill on Thursday, the US Energy Information Administration (EIA) has predicted that Iran oil export could witness a dramatic rise once all sanctions against the country are removed.
“These additional Iranian supplies, along with relatively higher global oil production and comparatively slower global oil consumption growth, will contribute to large inventory builds next year, resulting in lower oil prices than previously expected,” the EIA said.
“EIA expects most of this increase would occur in the second half of 2016,” the report added.
“These additional Iranian volumes are expected to put downward pressure on global oil prices in 2016, as Saudi Arabia and the rest of producers in the Organization of the Petroleum Exporting Countries are not expected to make production cuts to accommodate additional Iranian volumes in a well-supplied global oil market,” it added.
Iranian Oil Minister Bijan Namdar Zanganeh announced last month that the country plans to increase oil exports after the implementation of a nuclear conclusion between Iran and the six world powers.
“After (the implementation) of the agreement, our major work would just begin,” Zanganeh said on July 15, referring to the agreement between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany), known as the Joint Comprehensive Plan of Action (JCPOA).
“The first step is to prepare for increasing (oil) exports,” he said at the time.
Meanwhile, European refineries have indicated their preparedness to restart purchasing Iranian crude oil once anti-Iran sanctions are terminated.
According to Bloomberg, refiners based in Italy, Spain, and Greece have indicated that they are ready to resume purchasing crude oil from Iran when the country returns to oil markets.
Iran and the Group 5+1 concluded more than two weeks of talks over Tehran’s nuclear program in Vienna on July 14.
