An oilprice.com article by Andy Tully explains why the lifting of crippling sanctions on Iran that will allow the embattled country back into the oil markets is not a cause for concern.
During the OPEC meeting in Vienna on June 5, Bijan Namdar Zanganeh, Iran’s oil minister announced that his country would move quickly and begin an export increase of 400,000 barrels per day and add 600,000 within six months as soon as the deal is signed.
It sounds as if a million barrels a day will be dumped on the market at any moment. Not so. “When the deal is signed” is a very significant statement. That will not happen until 2016 at the earliest. The U.S. Congress has two months to study the arrangement before they vote on whether or not to accept it. If all goes according to plan, sanctions won’t be lifted until at least the end of the year.