Iran willing to start oil price war to win back market share

|By:, SA News Editor

Iran wants to boost oil production by 70% in an effort to retake its place as OPEC’s second-largest producer and is willing to start an oil price war to win back market share lost through sanctions.

Iran's state-run oil company is bullish about its ability to actually raise production, and the new oil minister - who served in the role from 1997 to 2005 - is welcomed as a respected figure who will remove politics from production.

Raising production likely would require the return of western oil majors Statoil (STO), Total (TOT) or Eni (E) that quit Iran when sanctions hit.

Also: A gap in U.S. law has allowed China to import nearly $500M of additional oil products from Iran this year while avoiding sanctions.

ETFs: USO, UCO, OIL, BNO, DBO, OLO, USL, CRUD, DTO, SCO, SZO, DNO, UOIL, DOIL, UWTI, DWTI.