Iran's petroleum minister said he is not worried about the oil market. Bijan Zangeneh said a nuclear deal between the country's government and six world powers would make the situation favorable for Iran. Zangeneh said Iran should not worry about the oil market, as the price per barrel was still less than $10. He added that the price was low not only in Iran but in the entire Middle East.
“We hope that we can increase our exports to international markets,” Iran's Press TV quoted Zangeneh as saying. “We want to raise our exports within few months to the level that we had before the sanctions.” He added that Iran would like to export gas and oil.
Iran exports about a million barrels of oil every day, as part of a preliminary nuclear agreement. Once the nuclear deal is finalized, Iran is expected to double the amount of oil it exports. Oil prices have been at record lows in recent months, as major producers such as Saudi Arabia have been increasing supplies.
According to Zangeneh, Iran wants to increase its capacity and production. He mentioned that oil had been a part of Iran’s economy for around a century. The Iranian minister added that gas was becoming equally important.
U.S. oil prices dropped further Tuesday. Dealers blamed it on debt talks in Greece. Analyst Sanjeev Gupta said that the debt crisis in Greece was being closely observed. He added that another key factor would be the nuclear deal between Iran and the world powers, Business Standard reported.
The Iran nuclear deal’s June 30 deadline will be a critical factor for investors. If the deal is finalized, Iran will see economic sanctions scaled back gradually. The sanctions, imposed by world powers since 2012, have been applicable to Iran’s petroleum industry as well. While Iran owns the No. 4 oil reserve in the world, sanctions restricted its output significantly.