Iran’s oil production may impair Ecuador

Image: El Comercio

The end of international sanctions against Iran, which became effective last Saturday (January 16th 2016), also assumes the termination of the oil embargo to this nation.

Iran will play a decisive role in the energy market and expects to quickly increase its current production of 2.8 million barrels a day, between 600,000 and one million barrels more. By the end of 2016 it expects to produce a total of 4.2 million barrels.

However, this could cause a further drop in oil prices, already weakened in a market with surplus production and weak demand. The current supply of crude oil is around 80 million barrels per day and the price for the West Texas Intermediate (WTI) crude closed at the end of last week at USD 29.42, its lowest price since November 2003.

Source: http://www.elcomercio.com/actualidad/produccion-petrolera-iran-complica-ecuador.html