July 20, 2015 (LBO) – Iran’s oil production could increase faster than analysts predict, said an International Energy Agency official, after a nuclear deal with world powers lifted sanctions on oil exports.
Most analysts expect Iran will take at least one year to reach the pre-2011 production level of 3.8 million barrels a day from 2.8 million barrels today, but Antoine Halff, head of oil markets at IEA, expects production could increase sooner.
“There really isn’t any compelling reason to doubt that Iran could ramp up quite quickly in terms of technical capacity,” he told the Bloomberg news service.
Faster oil production from Iran is likely to maintain downward pressure on oil prices, which should be good news for the purchasing department of Ceylon Petroleum Corporation.
Brent crude for September settlement was down 0.26% to $56.95 per barrel on Monday. This compares well with CPC purchases which averaged $104.53/bbl in 2014 and $109.84/bbl in 2013. Sri Lanka spent $4,597 million on fuel purchases in 2014 which accounted for 23.7% of total imports.
The Ministry of Foreign Affairs in June said crude oil was not unloaded from an Iranian merchant ship, F Whale, which had entered the Colombo port to obtain bunkering services. This was after a complaint by the US embassy in Colombo that unloading oil from the ship would breach the oil embargo.