Baku, Azerbaijan, Jan. 17
By Umid Niayesh - Trend:
Iranian official statements about delivering an additional 500 kb/d of oil to the global market immediately after the suspension of sanctions harm markets, Sohbet Karbuz, Director of Hydrocarbons, France, Mediterranean Energy Observatory (OME) believes.
"These kinds of statements cause nothing more than irritations in the market because of uncertainties on two key terms - volume and timing," Karbuz told Trend Jan. 16.
The international sanctions imposed on Iran with regard to its nuclear program is expected to be removed as the Joint Comprehensive Plan of Action (JCPOA, aka nuclear deal) enters implementation phase on Jan. 16.
"We will likely see the impact of return of Iran to oil markets after the June OPEC meeting," Karbuz said, adding until then Iran will release big amount of oil it was storing.
"We are talking about more than 35 million barrels majority of which is condensate. Besides we may see a gradual increase in Iranian oil production and exports, perhaps some 100 to 250 kb/d until June."
After June this amount may increase about 500 kb/d, he further said.
Iran has repeatedly announced that will increase its oil production and export by 500,000 barrels per day as soon as sanctions are lifted.
At the next step Iran plans to add another 500,000 barrels to its crude export to increase the total crude exports to some two million barrels per day.
Iran's current oil production is estimated to be around 2.8 million barrels per day (mbpd), of which about one million barrels are exported.
Iran's oil output was about 3.7 mbpd in 2011, but it has decreased due to western sanctions, imposed in mid-2012.