8 Apr 2015
Oil price to rise in spite of Iran deal - Capital Economics
FXStreet (Bali) - Tom Pugh, Commodities Economist at Capital Economics, expects the price of a barrel of Brent to experience a slight increase from about $57 to $60 by the end of this year despite a potential Iranian deal.
Key Quotes
"There is unlikely to be much additional Iranian oil hitting the market this year, even if a full deal is signed in June."
"Once sanctions have been lifted there could well be a surge in exports in the first few months as Iran sells its stores of oil, but ramping production up to previous levels is likely to take appreciably longer."
"The return of Iranian oil to the market is likely to help keep oil prices low over the next few years, but probably won’t be enough to offset the impact of lower US shale oil production and higher demand."
"Indeed, we still expect the price of a barrel of Brent to rise slightly from about $57 today to $60 by the end of this year and $65 by the end of 2016."
Key Quotes
"There is unlikely to be much additional Iranian oil hitting the market this year, even if a full deal is signed in June."
"Once sanctions have been lifted there could well be a surge in exports in the first few months as Iran sells its stores of oil, but ramping production up to previous levels is likely to take appreciably longer."
"The return of Iranian oil to the market is likely to help keep oil prices low over the next few years, but probably won’t be enough to offset the impact of lower US shale oil production and higher demand."
"Indeed, we still expect the price of a barrel of Brent to rise slightly from about $57 today to $60 by the end of this year and $65 by the end of 2016."