Iran to boost oil exports after sanctions are lifted

[Baneth]

Iran to boost oil exports after sanctions are lifted
http://news.yahoo.com/iran-boost-oil...145130859.html

Iran said Tuesday it will export an additional 500,000 barrels of oil a day after sanctions are lifted under a landmark nuclear deal in a bid to reclaim its market share despite low prices.

Oil Minister Bijan Zanganeh told reporters Iran plans to double its crude oil exports as sanctions are lifted, which officials expect to happen in early 2016. Iran plans to begin exporting an additional 500,000 barrels of oil a day six months later.

OPEC member Iran currently exports 1.1 million barrels of crude oil per day and hopes to get back to its pre-sanctions level of 2.2 million, last reached in 2012. Iran's total production now stands at 3.1 million barrels per day.

"Our exports will be doubled within a short period of time after the sanctions are lifted," Zanganeh said.

"We have no worries about selling the 500,000. God willing it will be realized. And I should not be concerned about price, others should be," he said, referring to other oil exporters.

"Under no circumstances will Iran concede its market share to others. We don't seek permission from anyone to use our rights."

Oil prices have plunged by more than half over the last year, to just over $40 a barrel.

International sanctions on Iran's oil industry were tightened in 2012 over its controversial nuclear program. Western nations have long suspected Iran of secretly pursuing nuclear weapons, charges denied by Tehran, which insists the program is entirely peaceful.

Under the agreement reached in July with the U.S., Britain, France, Germany, Russia and China, Iran will curb its nuclear activities in exchange for the lifting of sanctions.

Iran has already approved a new model contract for oil and natural gas projects and is to unveil details on the terms of new contracts next month as it seeks to attract much-needed foreign investment.

Iran will host a meeting of the Gas Exporting Countries Forum (GECF) on Saturday, which will include major producers such as Russia, Qatar and Algeria. Iran is the third largest producer after the U.S. and Russia.

Zaganeh said Iran hopes to become a regional gas hub and export to its neighbors. Iran produced 172 billion cubic meters of gas in 2014 and seeks to more than double its production to 365 billion in two years

So it's looking increasingly likely that Iran will further flood the the oil market, despite the low price of oil and with no care about how much further it likely will drop. At this rate, we may see 30$ or even 20$ barrel prices- which would cause disasters among oil exporting nations. Even Saudi Arabia is starting to feel the strain at current prices.


I had found this while going through my news feed. It's about Iran leadership facing A backlash from the nuclear deal. Felt it was somewhat relevant to this thread as everything hinges on Iran following through with the nuclear deal.

Tensions in Iran After Nuclear Deal Grow in Hostility
http://www.nytimes.com/2015/11/16/wo...lity.html?_r=0

[Independent voter]

It's a bad time for all that oil to come on the market. Oil will drop to $30 a barrel.

[Deleted]

It wont dip below 40$ per barrel. There will be typical knee-jerk reaction but it`ll be human element.

Most of their infrastructure is really old and it`ll take them this decade to get it online for the output they want to have.

[Deleted]

It's a bad time for all that oil to come on the market. Oil will drop to $30 a barrel.

How come we don't get to feel any of it? Shit like heating, fuel etc is still as expensive, if not more expensive than before even, when oil was $120 each.
I bet that even if oil drops to $1 each, we will still have to pay the same exorbitant fuel prices that we pay today.

This is seriously a farce.

[Puupi]

How come we don't get to feel any of it? Shit like heating, fuel etc is still as expensive, if not more expensive than before even, when oil was $120 each.
I bet that even if oil drops to $1 each, we will still have to pay the same exorbitant fuel prices that we pay today.

This is seriously a farce.

Fuel is cheap in the US.

[Deleted]

Fuel is cheap in the US.

Cheaper than what it was when oil was worth $120? Because in Europe, fuel prices only went up ever since, never down.

[Lenonis]

How come we don't get to feel any of it? Shit like heating, fuel etc is still as expensive, if not more expensive than before even, when oil was $120 each.
I bet that even if oil drops to $1 each, we will still have to pay the same exorbitant fuel prices that we pay today.

This is seriously a farce.

Part of it is taxes, part of it is fixed costs unrelated to the price of oil, and part of it is just supply and demand.

What we're probably seeing is more pricing related to refinery ability rather than oil prices -- at least that's my guess.

[apples]

the whole point of the current cheap oil is to destabilize the market, i.e. the US

its a gamble the saudis are making and its no surprise that iran is now in on it

[Poopymonster]

How come we don't get to feel any of it? Shit like heating, fuel etc is still as expensive, if not more expensive than before even, when oil was $120 each.
I bet that even if oil drops to $1 each, we will still have to pay the same exorbitant fuel prices that we pay today.

This is seriously a farce.

Thank speculators and capitalism.

[Deleted]

the whole point of the current cheap oil is to destabilize the market, i.e. the US

its a gamble the saudis are making and its no surprise that iran is now in on it

It is not even sure that the saudis are doing it without US backing....
against russia.

[Deleted]

Fantastic. Pollute more!

[apples]

It is not even sure that the saudis are doing it without US backing....
against russia.

could totally be true as well

who knows anymore, this is one of those things the public wont find out until 50 yrs from now and thats only if something important dies

[Auxora]

the whole point of the current cheap oil is to destabilize the market, i.e. the US

its a gamble the saudis are making and its no surprise that iran is now in on it

500k or even 1M barrels a day isn't going to destabilize the market. US and Saudis produce 25M barrels a day alone. Russia/China/Canada another 20M. 1M is a drop in the barrel on the global market.

[Independent voter]

Pretty much this. Bad news for us, but worse news for Russia, SA and the UAE.

Canada too.

[Deleted]

Canada too.

They are not as dependend it just stings a bit.

[Ryme]

Fuel is cheap in the US.

Lucky swines, excusing the odd blip it's only been increasing at a near constant rate here in the UK.

[Acidbaron]

Iran to boost oil exports after sanctions are lifted
http://news.yahoo.com/iran-boost-oil...145130859.html


So it's looking increasingly likely that Iran will further flood the the oil market, despite the low price of oil and with no care about how much further it likely will drop. At this rate, we may see 30$ or even 20$ barrel prices- which would cause disasters among oil exporting nations. Even Saudi Arabia is starting to feel the strain at current prices.


I had found this while going through my news feed. It's about Iran leadership facing A backlash from the nuclear deal. Felt it was somewhat relevant to this thread as everything hinges on Iran following through with the nuclear deal.

Tensions in Iran After Nuclear Deal Grow in Hostility
http://www.nytimes.com/2015/11/16/wo...lity.html?_r=0

Because everyone is doing it as IS is selling oil on the black market below the trade value.