Iran's oil production will stabilise
Friday, October 14, 2016
Significance
The oil sector is bouncing back after the lifting of international sanctions. Production has risen from an average of 2.8 million bpd during 2015, and is now approaching pre-sanctions levels. The country has finalised new-style petroleum contracts offering more favourable terms to international investors.
Impacts
- Banking, compliance and sanctions issues will gradually ease, reducing pressure on the oil sector.
- A stable production outlook will facilitate efforts to agree an OPEC production freeze.
- Oil revenue in 2016 could reach 31.5 billion dollars, 75% up on 2015, easing the fiscal situation.
- Exports of petrochemicals and refined oil products will rise, on the back of higher oil output and market opening.
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