Iran Likely to Produce 600,000 Barrels of Oil Per Day Upon Sanctions Relief

WASHINGTON (Sputnik) — Iran will likely produce hundreds of thousands of barrels of oil daily by the end of next year once international sanctions on Tehran are fully lifted, the US Energy Information Administration (EIA) said in a report on Thursday.

“Iran is also expected to increase production as sanctions are lifted,” the agency’s report read. “EIA estimates that Iran has the technical capability to increase crude oil production by about 600,000 b/d by the end of 2016.”

The pace and magnitude, EIA noted, that will reach the market will be dependent on how quickly Iran can meet “conditions triggering sanction relief and how successful Iran is in production and marketing operations.”

Most of the anticipated increase in oil production will likely occur during the second half of 2016, EIA added.

Iran’s increased oil production, the report explained, would put “downward pressure” on overall global oil markets in 2016. Other oil producers — including members of the Organization of the Petroleum Exporting Countries (OPEC) — would likely have to cut production to accommodate the higher volumes of Iranian oil.

Full article: Iran Likely to Produce 600,000 Barrels of Oil Per Day Upon Sanctions Relief (Sputnik News)

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