Eyes turned to Iran as Russia's potential rival in global oil and gas markets
Direct competition between Russian and Iran for oil and gas will not play a significant role in world markets
Alexander Kurdin, the Head of the Department for Strategic Studies in Energy of the Analytical Center, believes direct competition between Russian and Iran for oil and gas will not play a significant role in world markets for now.
Mr. Kurdin underlined that Iran’s oil supplies are mostly directed at Asian markets, while most Russian oil goes to Europe.
“However, the oil market is global, and new supplies to any part of the world are echoed by global prices,” said Mr. Kurdin.
He added that in this sense, Russia and Iran are competitors, and the return of Iranian supplies will hurt Russian export gains - but only if OPEC is unable to restrict output following its usual quota of 30 million barrels per day.
Commenting on the potential gas competition, Mr. Kurdin noted that gas markets are regional, unlike oil markets and that Iran still has no reliable export facilities.
“It is still difficult to imagine that there will be a pipeline from Iran to Europe with the current insecurity in the region, and LNG projects require specific technologies and considerable investments,” the expert said.