Exclusive: Sanctions deal will unleash Iran’s oil production, official says

Iran’s return to world oil market will add to glut

Here’s more good news for gas prices: Iran is planning a big return to world oil markets.

Iran has been shut out of Western oil markets for years due to sanctions, but those restrictions will be lifted if Congress backs a nuclear deal struck in July.

Tehran is wasting no time in planning its comeback, and is aiming to ramp up production faster than many expect despite a supply glut that is killing prices.

“Can we wait and not produce after lifting the sanctions? Who can accept it in Iran,” oil minister Bijan Zanganeh told CNN in an exclusive interview on Tuesday. “Do you believe that … our country will accept not to produce, to secure the market for others? It’s not fair.”

Iran has the fourth biggest oil reserves in the world and is pumping about 2.8 million barrels a day, according to experts.

Analysts expect the OPEC producer to add between 600,000 and one million barrels to output once sanctions are lifted, but Zanganeh is much more bullish.

He’s aiming for an increase of close to 1.5 million barrels by the end of 2016, taking daily production to 4.2 million.

“Around the end of next year we will be close to this figure,” he said.

Related: $2 gas is coming soon

Oil prices have been swinging wildly recently, slumping to new six-year lows last week before surging nearly 30% in three days. They were falling again Tuesday.

Uncertainty about the impact of China’s slowdown and the next moves in a battle for market share between OPEC and U.S. producers have been blamed for the volatility.

Some OPEC members have called for an emergency meeting to review the cartel‘s November 2014 decision to keep pumping at any cost, but Saudi Arabia shows no signs of blinking.

Zanganeh said the Saudi strategy was not working, and he indicated Iran was pressing for a reassessment.

“After one year the reaction of the market and shale oil producers … shows us it has no important effect. And I think we are going to the point … to decide how to manage the market.”

He said OPEC should be targeting a price of $70 to $80 a barrel. U.S. crude futures are currently trading around $46.

Read more: http://goo.gl/1gvBv7


Glossary


Exclusive   /ikˈsklo͞osiv/   N        

an item or story published or broadcast by only one source.

synonyms:   scoop, exposé, special

“a six-page exclusive”


unleash   /ˌənˈlēSH/   V        

release from a leash or restraint.

“we unleashed the dog and carried it down to our car”

synonyms:   let loose, release, (set) free, unloose, untie, unchain

“we are asking that you not unleash your reporters until the children have been safely escorted to a secured location”


official   /əˈfiSHəl/   N

a person holding public office or having official duties, especially as a representative of an organization or government department.

“a union official”

synonyms:   officer, officeholder, administrator, executive, appointee, functionarybureaucrat, mandarinrepresentative, agent;


glut   us   /ɡlʌt/    noun [C]            

a ​supply or ​amount that is much ​greater than ​necessary: a glut of new ​housing a glut of ​information


shut out

to not allow someone to enter a particular place


restriction                                              


struck   /strʌk/   past and past participle of strike. /strīk/

reach, achieve, or agree to (something involving agreement, balance, or compromise), arrive at, find, attain, establish

“the team has struck a deal with a sports marketing agency”

“striking a balance”

synonyms:   agree (on), come to an agreement on, settle on;

informal   clinch

“we have struck a bargain”


comeback   N

A return to formerly enjoyed status or prosperity: The film star made an unexpected comeback.


ramp up   /ræmp/   Phv     

If a ​businessramps up ​itsactivity, it ​increases it:

The ​companyannouncedplans to ​ramp up ​production to 10,000 ​unitspermonth. To ​staycompetitive, they’ll have to ​ramp up ​productdevelopment as well as ​cutprices.


barrel  

a cylindrical container bulging out in the middle, traditionally made of wooden staves with metal hoops around them.

synonyms:   cask, keg, butt, vat, tun, drum, hogshead, kilderkin, barrique, pipe;

historical   firkin

“oak barrels”


according to

As stated or indicated by; on the authority of:

“according to historians.”


analyst   /ˈæn.ə.lɪst/       

someone whose ​job is to ​study or ​examine something in ​detail:

“a ​financial/​food/​political/​systems analyst”


OPEC       Abbrev.      

Organization Of Petroleum Exporting Countries    

سازمان کشورهای صادر کننده نفت


output     V          

To produce or manufacture (something) during a certain time.


bullish   /ˈbʊlɪʃ/   V        

expecting a successful future

“The team was in a bullish mood before the start of the game.”

Synonyms and related words: Feeling hopeful and optimistic:

the glass is half full (empty), hopeful, optimistic


figure   /ˈfɪɡə(r)/   N   [countable]   [often plural]       

an official number that has been counted or calculated

Government figures show a continued decline in unemployment.”

“This year’s sales figures were excellent.”

“The final inflation figure was 6.5% for the year.”


swing   /swiNG/   V

to ​change:

“His ​mood swings between ​elation and ​despair.”


slump   /slʌmp/   V        

to be suddenly reduced to a much lower level

Profits slumped to under $250 million.

Synonyms and related words: To become less in size, amount or value:

crater, decrease, decline


low   uk   /ləʊ/  us   /loʊ/   N                      

a new/record/all-time low › the lowest ​level: The ​dollar has ​hit an ​all-time low against the ​Japaneseyen.


surge   /səːdʒ/   V        

Increase suddenly and powerfully:

“shares surged to a record high”

“He warned that unless supply continued to meet demand, prices would surge once again.”


uncertainty   uk  /ʌnˈsɜː.tən.ti/   us   /-ˈsɝː.tən.t̬i/   noun [C or U]

a ​situation in which something is not ​known, or something that is not ​known or ​certain:

“Nothing is ​everdecided, and all the uncertainty is very ​bad for ​staffmorale. Life is ​full of uncertainties.”


Slow down   uk   /ˈsləʊ.daʊn/   us   /ˈsloʊ-/  noun [C]

a ​reduction in ​speed, ​activity, or the ​rate that things are ​produced:

“a ​worldwideeconomic slowdown a slowdown in ​production


volatility   [vol-uh-til-i-tee]   N        

the trait of being unpredictably irresolute;

 “the volatility of the market drove many investors away”


unpredictability

In finance, volatility is the degree of variation of a trading price series over time.


Call for       Phv     

-call for something to say publicly that something must happen

“Several of the newspapers were calling for his resignation.”

Protesters were calling for a ban on the production of GM foods.”

-publicly ask for or demand.

“the report calls for an audit of endangered species”


cartel    /kärˈtel/   V

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition: “the Colombian drug cartels”


blink    /bliNGk/   V         

-not blink an eye

-Show no reaction.

‘’We don’t blink an eye today when we see women doing what would once be considered jobs for the boys’’.

(blink at) React to (something) with surprise or disapproval:

‘’he doesn’t blink at the unsavoury aspects of his subject’’


Press   /prɛs/   V        

Make strong efforts to persuade or force (someone) to do something:

 ‘’when I pressed him for precise figures he evaded the subject ‘’

[with infinitive]: “the marketing directors were pressed to justify their expenditure

[no object]: “they continued to press for changes in legislation


reassessment   (ˌriːəˈsɛsmənt)   N        

-the act or an instance of assessing again

-a new appraisal or evaluation  

“To perform a reassessment of something is to evaluate it again, or reappraise it, especially if its value has changed or new information has altered your understanding of it.”


crude   /kro͞od/   Adj     

in a natural or raw state; not yet processed or refined.

“crude protein”

synonyms:   unrefined, unpurified, unprocessed, untreatedunmilled, unpolishedcoarse, raw, natural

“crude oil”


future   /ˈfyo͞oCHər/   N

Usually, in plural futures.

“speculative purchases or sales of commodities for future receipt or delivery.”