As was triumphantly announced over the weekend by both parties (making one wonder who actually benefited), after years of U.S. sanctions, Iran is now free to export as much of its oil as it wants after the International Atomic Energy Agency said the country had curbed its ability to develop a nuclear weapon leads to lifting of international sanctions. And while the end of sanctions also opens the door to foreign investors into country’s oil sector, most importantly it allows the country to flood the world with its oil. As a result the first thing the Iran oil ministry did today was to issue a notification order to boost oil production by 500k b/d.
Below, courtesy of Bloomberg, is a summary of the world’s, and Wall Street’s reactions, to the lifting of the Iran oil embargo.
IRAN SAYS:
Iran beginning efforts to boost oil production, exports after removal of sanctions; targets increase in shipments of 500k b/d w/in mos.: Amir Hossein Zamaninia, deputy oil minister for commerce and international affairs
Iran already selling more oil after sanctions lifted; ~1,000 lines of credit have been opened for banks, says President Hassan Rouhani
INTERNATIONAL RESPONSE:
Iran deal paves way to closer energy cooperation w/ EU, will send 1st technical assessment mission on energy to Iran at the beginning of Feb., says EU Energy Commissioner Miguel Arias
Potential areas for cooperation incl. nuclear energy, oil, gas, renewables, energy efficiency, electricity market
Israel will monitor Iran for nuclear deal violations, says PM Benjamin Netanyahu
FOREIGN INVESTORS:
Shell interested in developing Iran’s “energy potential,” monitoring developments w/ regard to settling outstanding debt to NICO “as soon as we are lawfully able to do so”
Shell denies executives currently in Tehran for mtgs
ABN Amro says Shell, Iran relationship “has been very good,” puts co. in position to be “prime partner” for Iran with lifting of sanctions; lifting of sanctions has neutral overall impact
Leave A Comment