Officials in Iran are already counting their “chickens before they hatch,” with regard to anticipated crude oil prices. Officials and petroleum engineer Gianfrancesco Genoso are indicating that they see crude oil prices at $75 a barrel in the period after sanctions are lifted from the country. Iran Touts $75 A Barrel for Crude Oil Prices In Post Sanction World
Since the fall of 2014, crude oil prices have plummeted to prices below $50 a barrel and some sector analyst saw a potential for prices to drop to below $20 a barrel based on over production by the OPEC member nations and unexpected increased production by the United States.
Iran is OPEC’s fifth biggest crude oil producer. Iranian Oil Minister Bijan Namdar Zanganeh states that crude prices in the range of $70-$75 a barrel would be more suitable. But this would be difficult as more Iranian oil into a glut market would only press crude oil prices further down. Crude just recovered to a little more than $60 a barrel but many do not thing the price will be sustained and a another drop is in the near future. Iranian oil production could start within 10 days after the lifting of sanctions and could result in Iran being able to produce 3.8 million barrels a crude oil a day in just six months of start up and and up to 4 million barrels a day in less than a year from start up.