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Iran Crude Oil Could Be Released Following Nuclear Deal

Iran may have 93 million barrels of crude oil stored in tankers which could be released if a nuclear deal were to be reached – helping fill the void left by reduced Russian supplies to Europe.

SpinnerLaserz, Public domain, via Wikimedia Commons Flag of the National Iranian Oil Company
Flag of the National Iranian Oil Company NIOC
Infographic showing how Iranian Crude Oil could be released as a result of Nuclear Deal
Graphic by: Ninian Carter

A revived Iranian nuclear deal could release a sizeable cache of crude oil held by Tehran, that could be rapidly delivered to buyers, according to ship-tracking firm Kpler.

They believe 93 million barrels of Iranian crude and condensate are being stored on vessels in the Persian Gulf, off the coast of Singapore, and near China.

In 2018, then-President Trump withdrew the U.S. from the Joint Comprehensive Plan of Action (JCPOA, also known as the “Iran nuclear deal”), reimposing sanctions on Iran’s oil sector.

A potential return of Iranian crude into global oil markets – both from the volumes in floating storage and over the longer term – would be dependent upon the easing of U.S. sanctions, including those hindering oil flows.

Under this scenario, PVM Oil Associates believes the Brent crude price would dip to $65 per barrel in the second half of 2023 – a massive drop from the current price of around $100 a barrel.

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