Exploration & Production | Production Rates | Export
Iran Adds Fuel to the Fire
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Structural changes that have occured in the oil and gas sector. Oversupply is now keeping prices below $60 a barrel as Saudi Arabia is no longer a swing producer. Production from Iran could be coming onto the market before the end of 2015, bringing further volatility to an already oversupplied market. The Oil Minister of Iran, Bijan Namdar Zanganeh, said that Iran would be comfortable with $70 - $75 per barrel oil.
Current production from Iran at 3.2 MM barrels per day, and the country plans to bring production to 4 MM barrels per day by year-end. It is clear that $70-$75 per barrel will not be coming this year without a drop in production from other sources worldwide.
Iran's sanction-free production entering the world market could raise the oversupply by ~800,000 barrels.
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