TODAY.AZ / World news

Iran oil supply risk to stagnate

31 October 2017 [12:33] - TODAY.AZ

By  Trend


There is a risk of stagnating Iranian oil supplies supplies in 2018, the US JP Morgan Bank analysts believe.

The report obtained by Trend says that Iran’s strong compliance with OPEC deal is mostly due to lower-than-expected new oil supply coming online since the sanctions were lifted.

"Although there is a pipeline of new oil expected from West Karoun and some southern and central Iranian fields, which is a risk in 2018 in terms of Iranian compliance, equally there is also a risk of stagnating Iranian supplies if oil companies were to take a second look at investing in Iran after the US President Donald Trump’s decision to disavow the P5+1 deal, adding to uncertainty around capital investments," said the JP Morgan Bank analysts.

Earlier, the US Senate passed a bill to pose new sanctions on Iran over the missiles.

Iran and the five permanent members of the United Nations Security Council plus Germany signed the JCPOA on July 14, 2015 and started implementing it on January 16, 2016.

Under the agreement, limits were put on Iran’s nuclear activities in exchange for, among other things, the removal of all nuclear-related bans against the Islamic Republic.

Iran’s oil output registered a tiny increase in September by 9,000 barrels per day month-on-month, and stood at 3.827 million barrels per day (mb/d), OPEC reported Oct. 11.

According to the report, Iran’s September oil output was 309,000 b/d more than the 2016 average and 991,000 b/d more than the 2015 output.

The Islamic Republic’s oil output was 3.848 mb/d in September, according to an OPEC report based on direct communications, indicating a 21,000-barrel difference between OPEC's estimates and Iran’s data.

On May 25, 2017, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.

The reductions will be on the same terms as those agreed in November.

URL: http://www.today.az/news/regions/166325.html

Print version

Views: 1338

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: