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Oil prices may fall by $15/barrel on final Iranian deal: EIA

by ChemOrbis Editorial Team -
  • 08/04/2015 (11:43)
According to the Energy Information Agency (EIA), crude oil prices may retreat by $5-15/barrel next year following the finalization of the Iranian nuclear deal, which is slated to be signed by June 30. On April 2, Iran and the P5+1 powers (the US, France, Russia, China, the UK and Germany) reached a preliminary deal regarding Iran’s nuclear program which will eventually see the US and the EU lifting sanctions against Iran provided that Iran cooperates on scaling back its nuclear program.

According to the EIA, Iran currently has an oil stockpile of 30 million barrels and the country is likely to increase oil production in the event that sanctions are lifted. According to Bloomberg, Iran had an oil production of 2.85 million barrels per day (bpd) in March and may increase oil production by 700,000 bpd by the end of 2016. The EIA predicts that oil prices will average around $70/barrel on NYMEX on $75/ton on Brent assuming no lifting of sanctions against Iran.

Meanwhile, news reports of Saudi Arabia’s record high oil production are also increasing concerns about a global oil glut. According to media reports, recent data showed that Saudi Arabia posted record high oil production in March with 10.3 million bpd.
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