Iran crude output set to boost OPEC capabilities: Alistithmar Capital

Iran’s return to the oil market is likely to support The Organization of Petroleum Exporting Countries’ (OPEC) strategy to maintain its share in the global crude market and ease pressure on other major producers in the cartel, according to a research note by Alistithmar Capital, a Riyadh-based financial advisory firm.

OPEC, led by Saudi Arabia and its Gulf allies, since November has decided to maintain production levels to preserve market share and make it costly for smaller producers.

While Iran’s crude output has increased to 2.8 million barrels a day recently, the increase in production won’t necessarily have a negative impact on the prices, Alistithmar added.

Iran signed a landmark deal in Vienna last week with the United States, Britain, China, France, Germany, Russia and the EU to lift sanctions in return for curbing its nuclear program.