“It will be increased by 500,000 bpd (barrels per day), and by another 500,000 bpd shortly after that”.
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Iran’s Mehr news agency had earlier reported that Shell and French oil major Total had sent executives to Tehran, and were due to meet officials from the National Iranian Oil Company (NIOC) and National Iranian Tanker Company (NITC) on Sunday.
Free of global sanctions, unfettered Iranian oil exports might be expected to drive prices further below $30 a barrel.
Roknodin Javadi expressed satisfaction towards the removal of cruel sanctions against the Iranian oil industry stating “an opportunity has emerged now for acceleration of development in the country which will exert far-reaching effects on oil industry as well”.
Benchmark Brent blend fell below $29 on Friday, closing below $30 a barrel for the first time in 12 years. Oil Minister Bijan Zanganeh said this month Iran would not seek to distort markets but would make sure it regained its market share. The lifting of the sanctions is hardly surprising, and some analysts say most of the oil market fallout has already been priced into the market.
– Foreign investment -The estimates appear credible to many analysts, since it produced 4.0 million barrels per day before the global sanctions were imposed, and is now pumping 3.0 million.
However, Iran’s return to the global energy market is expected to dramatically affect the crude market.
“Iran has own consumers in the Asian market and wants to export more to Asian market, European consumers as well”, the expert said.
Iran’s daily production was estimated at 3.133 million barrels per day in 2016 and 3.333 barrels per day in 2017.
In the Persian Gulf states, panic gripped traders in response to a fresh tumble of oil and global equity prices.
The dramatic moves came after the United States, the UN and Europe removed sanctions on Iran, allowing the country to move ahead with its bid to redeem its share of the oil market with stepped-up production. Big funds’ short positions in NY futures have more than doubled to a record over 200,000 contracts since mid-October, when oil was near $50. There is no demand for such amount of production in the world oil market. It should be noted that the USA exports oil to world market and it means more oil in world oil market.
Yet most analysts don’t expect a huge reaction once markets open again after the weekend.
He said Iran had no intention of entering an oil price war with rival producers.
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“Russia also has to decrease its oil production”.
