Brent oil briefly falls below $28 after Iran sanctions lifted

Up to half a million barrels per day of Iranian crude could be added to already saturated markets...

The cost of futures for oil of mark Brent with delivery in March 2016 on the stock exchange ICE in London fell by 3.5% to $27,96 per barrel.

Up to half a million barrels per day of Iranian crude could be added to already saturated markets after US and European leaders ended a crippling embargo put in place over Tehran's nuclear programme.

The demand and the price of oil in 2016 will keep the decline, in some periods the price of oil will fall below $30 per barrel. This was announced by the Russian Finance Minister Anton Siluanov at the meeting in Kazan.

Ric Spooner, chief market analyst at CMC Markets in Sydney, said that while Iranian oil could come in quickly, suppliers still needed to find buyers.
        
"Iran has quite a large storage of oil at the moment. They are in a position to sell that if they choose to do so and increase supply quite quickly," Spooner told AFP.

But "they've got to get the buyers and that's one of the key questions", he said.

"I think Iran's main priority is going to be re-establishing its customer base and re-establishing its market share. They will want to be doing good, sound, attractive deals for their customers."  

Up to half a million barrels per day of Iranian crude could be added to already saturated markets after Western sanctions were lifted, allowing Tehran to resume oil exports.
 newz.gr
18/1/16
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• Oil price falls below $28 a barrel as Iran sanctions lifted...