The Head of the Department for Strategic Studies in Energy of the Analytical Center Alexander Kurdin commented on the lifting of the US, the EU and the UN Security Council's sanctions from Iran for Kompaniya Magazine.
The lifting of sanctions from Iran was considered in the behavior of oil prices last year
At the negotiations in Vienna in July 2015 a historic agreement was reached under which Tehran pledged to wind down its nuclear program in exchange for the lifting of the economic sanctions. According to an IAEA report, Iran has now performed all of the obligations it assumed under the Vienna accords. This has led to the lifting of the sanctions. Now the key question is how this is going to impact the oil prices if Iran should literally try and flood the global market with its oil. The answer is obvious - there will be no impact.
“For the most part the lifting of sanctions from Iran has already affected oil prices last year. The question was how the increase in Iran’s oil production would impact the oil production in OPEC countries, or, in other words, whether the other OPEC nations would be able to agree on a reduction in the output to free up a niche for the Iranian oil. Last December they failed to agree on a reduction in the output and oil prices went down from USD 40-50 a barrel to USD 30-40 a barrel,” Alexander Kurdin notes.
For more see the website of Kompaniya Magazine.