Thursday, October 8, 2015
Iran oil won’t lead to decrease in oil prices in world markets. - Russian Expert.
Iran oil won’t lead to decrease in oil prices in world markets. - Russian Expert. (Taz).
The lift of sanctions imposed on Iran won’t lead to decrease in oil prices in world markets, Sergey Pikin, director of Russian Energy Development Fund said in an interview with Trend.
Iran will not immediately deliver large volumes of oil to the market, he said, adding that at best, it will be able to increase the oil supply by one million barrels per day throughout a year.
The expert said that it is not such a large volume to have a significant affect on oil prices.
Pikin pointed out that in order to considerably increase the oil production, Iran needs investments worth tens of billions of dollars in oil projects.
“But for the present, Iran is in such a situation that the sanctions can be imposed again and no one will make large volumes of investments,” he added.
Foreign investors will not make serious investments in Iran until it becomes clear that this country fulfills all its obligations, according to the expert.
“If the sanctions imposed on Iran are lifted much later (than planned), this will positively affect the price hike,” said Pikin.
The futures prices for crude Brent oil and WTI oil totaled $52.8 per barrel and $49.47 per barrel, respectively as of Oct.7.
Most analytical agencies do not expect significant growth in oil prices in the short term. Hmmm.....I said it before and say it again, 'Iran will use it's huge stockpile as leverage to gain back their OPEC Share, if OPEC doesn't give in to their demands the will dump all their stocks on the market crashing the OIL market prices.' Nobody wants $20/Barrel prices. Read the full story here.