Iran Return to Intensify Europe Oil-Price Competition, IEA Says

13-Nov-2015

Oil price competition in Europe is set to intensify when Iranian crude returns to the market after sanctions on its nuclear program are lifted, the International Energy Agency said.

Europe will be the battleground between producers of sour crude grades, including Russia, Iraq, Saudi Arabia and Iran, as the Asian market becomes more “crowded,” the Paris-based IEA said in its monthly report.

Iraq, the second largest oil producer in the Organization of Petroleum Exporting Countries, has increased its market share in Europe after the imposition of sanctions on Tehran resulted in the collapse of Iranian exports, the IEA said. Iraq sold 1 million barrels a day to Europe in July and August, overtaking Saudi Arabia, according to the IEA. (by Angelina Rascouet, bloomberg)

Despite these gains for Iraq and Saudi Arabia in the continent, Iran is “keen to reclaim” its market share, the IEA said. Sanctions on its nuclear program are widely expected to be lifted next year following a deal agreed with world powers in July.