Lifting of Sanctions on Iran Brings Oil Prices to Lowest Level in 13 Years

Reports indicate that following the lifting of sanctions on Iran on Saturday, oil prices in global markets fell to their lowest level since 2003 on Monday, January 28. According to Reuters, as the market anticipates an increase in Iranian oil exports, the price of North Sea Brent crude dropped below $28 on Monday. The report states that before the sanctions of 2011, Iran was exporting more than two million barrels per day, but due to the intensification of international sanctions, this figure has now decreased to over one million barrels per day. Reuters adds that Iran is expected to strive to regain its former position. Meanwhile, Amir Hossein Zamani Nia, Deputy for International Affairs and Trade at the Ministry of Oil, stated on Sunday: 'Iran is ready to increase its oil exports by 500,000 barrels, considering the conditions of global oil markets and the current surplus supply.' According to Reuters, the price of North Sea Brent crude reached $27.67 on Monday, while its price in 2003 was slightly above $28. The report also mentions that U.S. crude oil fell by 58 cents to $28.84. Rick Spooner, an oil market analyst, told AFP that despite Iranian oil being able to enter the global market quickly, new production will require new customers. He added that Iran currently has a significant amount of oil produced and ready to enter the market stored in tankers. As a result, they now need to decide whether to bring these reserves to market or not. However, this analyst emphasized that the current issue for Iran is to find new customers for its oil. According to AFP, members of the Organization of the Petroleum Exporting Countries (OPEC) opposed reducing oil exports last year in their meeting to stabilize prices in global markets, hence the competition among members of this organization for the market continues.