The election of a “major” may slow Iran’s return to the oil markets


4 hours ago

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Washington – DPA: Sarah Vakhshouri, president of SVB Energy International, a strategic oil-related consultancy, expected that Iran would continue talks aimed at reviving its nuclear agreement in the coming period before the new government takes office, but she indicated that The election of a conservative cleric to the post of president lowers expectations of a quick Iranian return to the global oil market.
Ebrahim Raisi won the Iranian presidential elections that took place last Friday, and is scheduled to take office in August, succeeding the government of outgoing President Hassan Rouhani, whose government reached the nuclear agreement with world powers in 2015.
Vakhshouri said that high demand and the continued imposition of restrictions on production by the “OPEC +” alliance and shale oil producers in the United States means that the markets will witness a deficit of up to 1.5 million barrels per day by the end of the year.
On the possible timing of an increase in crude exports from the Islamic Republic, Vakhshouri said, “Demand will absorb the return of Iranian oil to the market if this happens in the second half or the last quarter of 2021.”
She added that it would be unlikely that US and European companies would seek long-term contracts and work in Iran’s oil industry, given the prospects of continuing uncertainty about sanctions. At the same time, it is likely that the new Iranian administration would prefer to continue selling oil to China in exchange for investments.


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