A US government statement has lifted ban on Iran’s oil exports following the signing of JCPOA in Vienna.
Iran reportedly will snatch the opportunity to immediately increase its oil exports about 500k barrels within a week, MNA reported.
The statement allows countries and oil companies to buy crude oil from Iran by the full implementation of the JCPOA. The statement, signed by the president of the United States, will annul a previous statement punishing companies and countries who had bought Iranian oil. Sanctions however left non-US companies untouched in their interactions with Iran.
Currently, Iran’s crude oil production is estimated to be 2.7 million barrels per day. With lifting of 3 major sanctions hitting Iranian oil sector, which affected cash transfer, oil tanker procurement, and insurance, Iran’s oil production will be up about 500k barrels per day.
Together with this boost, Iran’s crude oil force majeure project to add another 1.5 million barrels will render a total per day export of 2 million barrels.
Currently, a great challenge facing Iran’s oil entry to world markets in post-sanctions era is surplus supply of oil by OPEC members of Persian Gulf Arab countries and some non-OPEC countries such as Russia and US. Bijan Namdar Zanganeh had told reporters earlier this week that Iran’s cap of oil production would touch 3.9 million barrels per day; “in the case that surplus supply of oil hits markets, and Iran would seek to find its past place in the market, oil prices will tumble again; however, even if so, Iran would not be drastically damaged by the rocking oil prices,’ he was quoted to have said.
Zanganeh also had said that in cheap oil prices, Iran would come the ultimate victor, thanks to near doubling of its exports following removal of sanctions, effectively maintaining a stable condition in oil incomes.