Iran to boost oil output by 500,000 barrels
Source: AP
TEHRAN, Iran (AP) Iran plans to increase oil production by 500,000 barrels per day now that sanctions have been lifted under a landmark nuclear deal with world powers.
Deputy Oil Minister Roknoddin Javadi says Iran is determined to retake its market share, which plunged after the crippling sanctions were imposed in 2012. His comments were posted on the ministry's website Monday.
The U.N. nuclear agency certified Saturday that Iran has met all of its commitments under last summer's agreement, prompting the lifting of sanctions.
Iran used to export 2.3 million barrels per day but its crude exports fell to 1 million in 2012.
Read more: http://bigstory.ap.org/article/fbe4e7acc6c94c7aacb92f891902b065/iran-boost-oil-output-500000-barrels-0
leftynyc
(26,060 posts)force the price of gas down.
bigdarryl
(13,190 posts)leftynyc
(26,060 posts)to put your money. It's been obvious for quite some time that oil stocks are not where you want to be.
L. Coyote
(51,129 posts)Lowering cost of production is good for stocks. Maybe not for Big Oil, but the companies that use transportation, buy transported goods, etc. this is a positive for consumers, another economic benefit by stimulus down the road.
hollowdweller
(4,229 posts)Meanwhile the middle and lower class gets a huge break in oil prices.
Good job Obama!
Gregorian
(23,867 posts)EX500rider
(10,798 posts)Most of his wealth comes from his wife's Anheuser-Busch beer distributorship, Hensley & Company, not energy sector stocks or holdings.
Gregorian
(23,867 posts)JCMach1
(27,553 posts)karynnj
(59,495 posts)So - adding .5 million is less than 1% increase in total production. Not to mention, it seems they may need to spend money to upgrade their infrastructure to do this - so it won't happen immediately.
This industry outlook, already includes the Iranian oil:
Forecast OPEC crude oil production increases by 0.5 million b/d in 2016, with Iran expected to increase production once international sanctions targeting its oil sector are suspended. Under the Joint Comprehensive Plan of Action (JCPOA) between Iran and the five permanent members of the United Nations Security Council and Germany (P5+1), which was announced on July 14, 2015, sanctions relief is contingent on verification by the International Atomic Energy Agency (IAEA) that Iran has complied with key nuclear-related steps. Forecast OPEC crude oil production is expected to increase by 0.6 million b/d in 2017, with Iran accounting for most of the increase.
Although uncertainty remains as to the timing of sanctions relief, EIA assumes the implementation occurs in the first quarter of 2016, clearing the way to ease sanctions at that time. EIA has moved up the anticipated implementation day because Iran has made faster-than-expected progress in meeting key obligations required under the JCPOA.
Iran's crude oil production is forecast to grow by about 0.3 million b/d in 2016 and by 0.5 million b/d in 2017. The forecast growth of Iran's crude oil production through the forecast period also depends on internal factors including Iran's ability to mitigate production decline rates and meet technical challenges and on its willingness to discount oil.
https://www.eia.gov/forecasts/steo/report/global_oil.cfm
I have not seen an analysis, but I would bet that the slow down in China might be what is causing oil prices to fall, not the fact that Iran can sell oil.
Odin2005
(53,521 posts)Their whole shtick was to drive oil prices up and kiss the asses of their Saudi handlers..
alfredo
(60,071 posts)For starters, oil-producing countries and states. Venezuela, Iran, Nigeria, Ecuador, Brazil and Russia are just a few petrostates that are suffering economic and perhaps even political turbulence. Persian Gulf states are likely to invest less money around the world, and they may cut aid to countries like Egypt.
In the United States, Alaska, North Dakota, Texas, Oklahoma and Louisiana are facing economic challenges.