Nowadays' big news is the removal of international economic sanctions on Iran, following the implementation of the July 2015 nuclear agreement.
Bijan Zanganeh, Iran’s oil ministry ordered the ramp up of 500K barrels per day in production. Iran says it can achieve the target almost immediately. Iran has oil tankers loaded with 50 million barrels of crude oil ready to depart. Iran has every incentive to sell more oil, just like any other producer who is trying to make up for falling revenue by shipping more volume.
"The key to understand reason behind Iran's decision is the fact they predict the price of crude oil to rise back to 40$ level" says Emad Honarparvar, CEO of Modiran Trading firm in Iran. This prediction is based on world's bullish betting on oil prices plus the weak Saudi policies to control the market and global atmosphere against Iran, he added.
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The price of Bitumen has dropped to 235 USD per MT FOB Bandar Abbas with new low levels of Oil prices.