Fatih Birol, the executive director of the International Energy Agency (IEA), on Monday said that lifting of anti-Iran sanctions could have a positive impact on the global oil market.
Geopolitical risks in the Middle East that could disrupt supplies remained but a "lifting of sanctions on Iran could boost (crude oil) production by 400,000-600,000 barrels per day (bpd) within a year", Birol said at the Singapore International Energy Week on Monday, Reuters reported.
"It will be a great mistake to index our attention to oil security to the oil price trajectory in the short term," he said.
If prices continued at current levels, oil investment was likely to decline again in 2016, mainly in high-cost regions, after sliding this year by more than a fifth, said Birol, who took over the top post at the Paris-based IEA in September.
"If it comes true, this will be the first time in two decades we will see oil investments declining for two consecutive years," he said. "One should think about medium and long term implications of this lack of investments."
Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany – also known as the P5+1 or E3+3) on July 14 reached a nuclear deal that would terminate all sanctions imposed on Tehran over its nuclear energy program after taking effect.