Oil price may fall to 10 dollars per barrel - FORECAST

Oil price may fall to 10 dollars per barrel - FORECAST
The lifting of sanctions against Iran could lead to a crisis on the world oil market

Baku. 4 April. REPORT.AZ/ In the short term the price of oil on the world market may fall to 20 and even to 10 dollars per barrel. However, in this case, oil prices will begin to grow rapidly in the short term and reach the current value. Report informs according to observer of commodity markets of Capital Economics investment company Thomas Pugh, this dynamic will be observed in the case of the lifting of economic sanctions against Iran.

Experts of the Bloomberg also believe that if  Iranian oil returns to the world market,  crude oil price might  fall to 10 dollars per barrel.

Deputy Prime Minister of Russia Arkady Dvorkovich said that return of Iran to the commodity market will not affect the price of oil and it will remain at 50-60 dollars per barrel.

In addition, as calculated by the US, Iran now has a reserve of 7-17 million barrels of oil and according to the information of the E.A. Gibson Shipbrokers Ltd - 34,5 mln barrels of oil ready for sale.

According to estimates of "Goldman Sachs" analysts', Iran will be able to increase its exports in the second half 2015.

However, the sale of reserve oil during this period will lead to an increase in supply in the market.

It should be noted, that companies such as BP, Shell, Total and LUKoil declared their readiness to proceed with the activities in Iran in the oil sector in case of lifting of sanctions.

Embargo currently existing against Iran was imposed in 2012. The European Union (EU) imposed a ban on imports of Iranian oil, and the United States in 1980 banned its companies to buy Iranian oil, the second imposed sanctions and banned to import oil from Iran to third countries.

As a result, Iran's oil exports fell from 2.5 million in 2011 to 1.1 million barrels in 2013. Iran has shifted from the second to fifth (after Saudi Arabia, Iraq, United Arab Emirates and Kuwait) in the list of OPEC in volume of oil production.

However, after a slight easing of sanctions in 2013, Iran increased oil exports to 1.4 million barrels per day. The main buyers were China and India.

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