The likely easing of sanctions on Iran is one of several downside risks to global oil prices over the remainder of the year. Admittedly, it may not be until 2016 before Iran can meet its side of any comprehensive agreement with the Western powers, so a surge in supply would not be imminent. Nonetheless, we expect exports from Iran to increase by 1 million barrels per day pretty quickly thereafter. The anticipation of this increase could have a significant impact on an already over-supplied market, especially with output from US shale set to recover too.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services