Iranian Oil threat is greatly exaggerated? expert
The fall in oil prices has been significantly mene last year due to concern over the increase in the volume of production and exports from Iran after the lifting of sanctions against the country. However, “Iranian Oil threat ‘was probably greatly exaggerated, says analyst Oil Price Maykl Makdonald.
Iran’s oil production has recovered much faster than many analysts expected. At the moment, Iran has brought oil production to about predsanktsionnyh levels. The potential to increase production in the country is very limited, says Maykl Makdonald. Oil production in the country is already well underway at full capacity, and there is no sign that Iran is able to continue to increase it, in addition, the country can not afford to concede in the price to win market share from other major oil producers ( Saudi Arabia and Russia).
Iran expects to move from the production of 3.5 million barrels per day in May to 4.8 million barrels per day by 2021, but to achieve this, the country needs $ 70 billion of foreign capital, which is to receive it unlikely. Now China has its own problems, but Europe remains cautious in dealings with Iran, although the sanctions against the country and removed, but there is no guarantee that they will not be introduced again.
Apart from the “investment crisis,” Iran has certain problems with extraction. Oil exports to Europe now open, but the volume of exports to remain far below the levels dosanktsionnogo. enough strong competitors have, in particular, Russia in the European oil market. Currently, most of the Iranian oil is sold in Asian countries? China, India, Japan and South Korea.
The slowdown of production in Iran has hit oil producer in OPEC, along with supply disruptions from other countries. OPEC production fell slightly in May, and it is likely that it will be repeated in June.
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