Will Iranian oil prices reach $100?

Business Materials 13 May 2019 11:25 (UTC +04:00)

Baku, Azerbaijan, May 13

By Elnur Baghishov – Trend:

If no significant incidents happen in the Persian Gulf, the price of 1 barrel of oil will not reach $100, even with Iran's oil exports decreasing, Morteza Behrouzifar, deputy head of the Iranian Association for Energy Economics and energy expert, told ISNA, Trend reports.

According to Behrouzifar, an increase in oil prices under the current conditions is virtually impossible; however, the prices may fluctuate in the meantime, and a short-term $5-10 increase is possible.

"But it does not seem realistic that the price of 1 barrel of oil will stay at $100 or even $80 for about a month. But if any events that may affect the current stability in the Persian Gulf will occur, oil prices may increase by $200," he said.

Commenting on Iran's oil exports reaching zero, the energy expert said that it would be sensible for Iran to export a minimum of 400,000-500,000 barrels of oil.

"Neither the increase in oil exports of other countries nor the increase in oil prices will affect Iran’s oil revenues in any way, as Iran is faced with money transfer problems," he said.

The US imposed sanctions on Iran's oil sector in November 2018, while providing a 6-month exemption period for 8 countries buying oil from Iran. The period ended on May 2 and was not prolonged by the US.