Ignoring Iranian Crude Output Would Be Costly

Refiners cannot easily and inexpensively replace Iran’s oil with that of other providers in a short period of time
About 1.8 million barrels of Iran’s oil output are exported.About 1.8 million barrels of Iran’s oil output are exported.
International crude markets are not in a state to eliminate a provider with more than 150 billion barrels of oil reserves

Although Iran’s crude production is far less than that of global producers, the country is an influential member of the Organization of Petroleum Exporting Countries.
Fereydoun Barkeshli, an Iranian energy analyst and the president of Vienna Energy Research Group, on Wednesday elaborated on the effects of the United States’ decision to pull out of Iran's nuclear deal that was signed in late 2015 and took effect in January 2016, ILNA reported.
“In OPEC and the global markets, Iran is the main rival of Saudi Arabia, OPEC's largest producer,” Barkeshli said, underlining that the volume of OPEC members’ output is not the only leverage in the organization.
“Most of the OPEC producers’ oil passes through Iran’s strategic Strait of Hormoz in the Persian Gulf for export, which further helps the country strengthen its position in the oil market.”


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