Iran has exported a crude oil shipment to Europe, since the the nuclear deal was implemented for the first time. But it is believed that the country’s coming into the market will further affect the declining crude oil pries and increase the global glut that is soaring.
The Country’s news agency quoted Deputy Oil Minister Rokneddin Javadi as saying that there that its a new era in Iran’s oil market because the shipment was the first in five years.
The International Atomic Energy Agency had recently lifted the sanction on Iran saying that the country had met its initial obligation on the terms of the nuclear deals which enables the implementation.
Analyst believed that the oil export may lead to further drop in prices, reason being that Iran had relatively low production cost compared to other countries and that drop in prices will further jeopardize plans
The international oil market has been suffering since the summer of 2014, losing more than two-thirds of its value. OPEC countries have flooded the market with a production ceiling of 30 million bpd – with no signs of cutbacks. Oil prices recently fell to $28 a barrel – a 13-year low.
Iran’s oil minister told CNN in an interview that His country is aiming to increase production by to close to 1.5 million barrel per day taking the total daily production to 4.2 million barrel per day.
Source: The Guardian