Global oil prices could sink if Iran returns to the market

|By:, SA News Editor

Iran’s return to the oil market could trigger a "positive supply shock," sending oil prices plunging by as much as $20/bbl; Iranian oil could roil markets since there is already adequate supply sloshing around at a time of subdued global economic growth.

Saudi Arabia, which has been cranking up production to record levels to offset falling output from unstable producers, may cut its own production to ensure price stability, leading to a more subdued $10 decline.

It may not take too long for Iran to reach ~4M bbl/day pre-sanction levels since it stopped production only due to declining exports, says the head of SVB Energy.

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