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World markets expecting more crude oil from Iran

Abadan Petrochemical Complex, Iran

The U.S. may ease the pressure of its sanctions on half a million barrels and consuming most of the
Tehran to allow more barrels of Iranian oil to enter rest. It is ranked 12th in the world for oil
the global market, Mike Muller, head of Asian consumption, accounting for about 1.9% of the
operations at Vitol, told Bloomberg this weekend. world's total consumption of 97,103,871 barrels per
According to Muller "If the midterm elections are day.
dominated by the need to drive down gas prices in It is important to stress that Iran has proven
America, turning a little bit more of a blind eye to reserves equivalent to 239.2 times its annual
the sanctioned barrels flowing is probably consumption. This means that, without net exports,
something we would expect to see. " there would be about 239 years of oil left (at current
Another report from Reuters citing unnamed consumption levels and excluding unproven
sources informed that the U.S. is also easing reserves). However, the country has been preparing
sanctions on Venezuela, allowing two European to re-enter global oil markets despite the diplomatic
companies to ship Venezuelan crude to struggling standoff. The country has increased production and
Europe.Muller's comments come as negotiations exports to China, where it finds its primary market.
between the U.S. and Iran on a new nuclear deal According to analysts, if a new deal is concluded
appear to be at an impasse. The Iranian side wants with the U.S., Iran's foreign oil flow could increase by
the U.S. to remove the Islamic Revolutionary Guard 500,000 and reach bpd to 1 million bpd.
Corps from its list of terrorist organizations, but the To boost oil exports, Iran was willing to offer its
U.S. does not seem willing to make that concession. crude at a discount of $11 a barrel to the Brent
Meanwhile, the global oil price situation remains benchmark on a delivered China basis, some $8
quite tense, with Brent crude oil trading above $120 below Russian crude Urals, traders said. With
per barrel and West Texas Intermediate above $119 regards to the current geopolitical and economic
per barrel at this time, even after OPEC agreed to tensions around the World, the U.S. have a keen
increase its monthly production to raise target by interest in reaching a deal with Tehran, which could
more than 200,000 bpd. Iran is currently producing help drive down retail fuel prices as a result of lower
around 2.5 million barrels of oil per day, exporting crude oil prices.

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