Date
23 November 2017
Iranian President Hassan Rouhani arrives at the giant South Pars gas field on the Gulf coast Tuesday to inaugurate a major part of the facility. Photo: AFP/Iranian Presidency
Iranian President Hassan Rouhani arrives at the giant South Pars gas field on the Gulf coast Tuesday to inaugurate a major part of the facility. Photo: AFP/Iranian Presidency

Iran nuclear deal won’t open oil taps right away

A possible deal over Iran’s nuclear program that would phase out economic sanctions against the country is unlikely to flood world markets with more oil any time soon, Reuters reported.

Iran has declared its intention to claw back market share lost because of the curbs.

Negotiators are still working out details of the deal, which they hope to complete by the end of June, but it would almost certainly lift sanctions only in stages.

That would delay even a partial return of Iranian crude exports until at least next year, market experts, former US officials and western diplomats said.

Progress in talks in Switzerland this month has contributed to a more than 10 percent slide in oil prices over the past week as some traders and analysts brace for up to one million barrels per day of Iranian crude hitting the markets.

That would double the estimated global supply surplus.

– Contact us at english@hkej.com

CG/FL

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