Lifted sanctions against Iran

17. January, 2016 News No comments

Iran has fulfilled all obligations under the nuclear agreement, which in July last year concluded with world powers – said today the head of the International Atomic Energy Agency (IAEA) Yukiya Amano. As a result, the US and the EU decided to lift the economic sanctions imposed on Iran.

In recent days, experts had expected such a decision and predicted the lifting of sanctions on Jan. 17. In that case Iran will regain control of frozen bank accounts, which is about $ 50 billion.

Iran was OPEC’s second-biggest oil producer before sanctions were imposed in 2012, and the statements of local politicians indicate that Iran will rapidly increase production to once again return to the high position. It was believed that Iran will export 500 000 barrels per day in half of a year after the abolition, but because of idled fields the number may reach only a half of the promised surge in crude output. State with its capital Tehran requires large capital expenditures to restore production.

But what it means to Oil market?

Expecting higher supply from Iran caused even more significant declines in crude oil prices, which broke the barrier of $ 30. Including oversupply on international markets, very large stocks, and shortness of breath Chinese economy it is an additional factor that will cause oil prices will nosedive.

And what about Gas?

Most of Iran’s gas fields are located in the south of the country, while in the north there is the greatest demand due to concentration of industry. That is why Iranians negotiate SWAPS with Gazprom. The agreement with the Russians would allow Iran to use blue fuel in the Caspian region , Russian contract would have been realized with Iran while mining the Persian Gulf. Iran would also want to export their gas to Europe however, right now there is no such infrastructure, so it is rather long way perspective. Another way to export gas may be terminal „Persian LNG” that Tehran is thinking about. After the lifting of the sanctions Iran can return to their abandoned plans from 2007. They may be also part of the planned gas pipeline network between Azerbaijan and Italy, but at the moment no one has officially confirmed these plans.

Re-opening of Iran’s relations with the West is also a chance also for Polish companies. Evidence this PGNiG, which in May led talks with Iranian representatives.

For sure in the near future the oil market will go through major changes. The returning player, which is Iran, can cause a lot of confusion.

sources: Energetyka24.plOnet.plbloomberg.comEnergetyka,

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