Sanctions Lifted on Iran; 1 Million Barrels of Oil to Hit World Markets During Price Collapse


From CNN Money:

The end of economic sanctions against Iran could shake up oil markets.

U.S. and European Union sanctions on Tehran were finally lifted on Saturday, restoring Iran’s access to world’s markets. Iran has been gearing up for this moment for months and could soon return to the top ranks of global oil producers.

Crude prices have been tanking for months, dropping to below $30 a barrel. A flood of new oil from Iran will likely push them even lower very soon.

“Iran is able quickly to pull oil out of storage and from tankers floating at sea … which it has an interest to do soon, since it is paying to store that oil,” said Brenda Shaffer, a professor at Georgetown University in Washington, D.C.

Analysts expect Iran to add between 600,000 and one million barrels per day to its oil output, but the country’s leaders are much more bullish.

Iran is aiming to increase output by close to 1.5 million barrels by the end of 2016, taking daily production to 4.2 million, Iran’s oil minister Bijan Zanganeh (pictured) told CNN in an exclusive interview.

Read the rest of the piece here.