{With sanctions lifted, country eyes additional 500,000 barrels of oil per day, pushing crude price down to 13-year low.}<\/p>\n
Iran has said it plans to increase oil production by 500,000 barrels per day now that sanctions have been lifted under a nuclear deal with world powers.<\/p>\n
Analysts say the decision is likely to bring down the price of oil further in the world market.<\/p>\n
Roknoddin Javadi, deputy oil minister, said Iran is determined to retake its market share, which collapsed after the sanctions were imposed in 2012.<\/p>\n
His comments were posted on the ministry’s website on Monday.<\/p>\n
Iran used to export 2.3 million barrels per day but its crude exports fell to one million in 2012.<\/p>\n
Oil prices have recently fallen to about $28 a barrel, a 13-year low.<\/p>\n
However, Richard Mallinson, an energy analyst, told Al Jazeera it remains unclear how quickly can Iran boost production.<\/p>\n
The UN nuclear agency, IAEA, certified on Saturday that Iran had met all of its commitments under last summer’s agreement, prompting the lifting of sanctions.<\/p>\n
And on Monday, Yukiya Amano, the IAEA’s head, arrived in Tehran for talks with Iran’s President Hassan Rouhani.<\/p>\n
Amano will also meet the head of Iran’s atomic organisation. The IAEA’s monitoring and verfiying of Iran’s atomic programme is expected to be on the agenda.<\/p>\n
First comments<\/p>\n
With the lifting of the sanctions taking centre-stage, the UAE’s energy minister said in Abu Dhabi on Monday that any extra supply of crude oil would “harm the market.”<\/p>\n
In the first comments by an Arab Gulf member of OPEC about Iran since most sanctions were lifted, Suhail bin Mohammed al-Mazroui said any new production that comes into the market would delay the time for the market to balance itself.<\/p>\n
“… Does Iran have the right to do so? Yes of course; they are a member of OPEC and are entitled to that … but is this going to help [the] situation? No,” he said.<\/p>\n
“We are having an oversupply and anyone who will introduce more supply in current situation will make it worse.”<\/p>\n
On Monday, OPEC gave reassurance the price of oil will rebound later this year, saying non-OPEC countries will be forced to slow down production, thereby reducing supply and boosting the price globally.<\/p>\n
Jochem Wermuth, a market analyst in Abu Dhabi, said it is “unlikely” that oil prices will ever go as high up as the levels of July 2008, when it hit $147 per barrel.<\/p>\n
“I would think that what the market would see is a further fall in the oil price,” he told Al Jazeera.<\/p>\n
“We think that it is a structural fall in the oil price. We don’t think it will swing up again soon, or ever indeed.”<\/p>\n
Moody’s, the credit rating agency, said the sanctions relief will boost liquidity and economic growth in Iran.<\/p>\n
Moody’s said Iran’s increased oil production “will contribute to higher growth” next year, with “positive spillover effects” on higher investment and consumption spending.<\/p>\n
Iran’s economy is expected to grow four percent to 5.5 percent in 2016 and 2017, largely due to higher oil production.<\/p>\n","protected":false},"excerpt":{"rendered":"
{With sanctions lifted, country eyes additional 500,000 barrels of oil per day, pushing crude price down to 13-year low.} Iran has said it plans to increase oil production by 500,000 barrels per day now that sanctions have been lifted under a nuclear deal with world powers. Analysts say the decision is likely to bring down […]<\/p>\n","protected":false},"author":3,"featured_media":2000071595,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[101],"byline":[2474],"hashtag":[],"class_list":["post-22622","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-internationl","byline-al-jazeera"],"bylines":[{"id":2474,"name":"AL JAZEERA","slug":"al-jazeera","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"contributors":[{"id":2474,"name":"AL JAZEERA","slug":"al-jazeera","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"featured_image":{"id":2000071595,"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22622.jpg","alt":"","caption":"","mime_type":"image\/jpeg","width":0,"height":0,"sizes":{"thumbnail":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22622.jpg","width":1,"height":1},"medium":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22622.jpg","width":1,"height":1},"medium_large":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22622.jpg","width":1,"height":1},"large":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22622.jpg","width":1,"height":1},"full":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22622.jpg","width":0,"height":0}}},"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/22622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=22622"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/22622\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media\/2000071595"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=22622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=22622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=22622"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=22622"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=22622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}