1. Iran Nuclear Saga
Iran was/is believed by many to be working over a nuclear weapon which
has been consistently denied by the Iranian authority.
Developed countries along with few emerging nations imposed a series of
sanctions on Iran. Countries pledged to gradually decrease oil imports
from Iran in a bid to suppress its nuclear programme.
India's oil Import from Iran(mn tonnes)
18.5
17.4
14
Aforesaid action led to a steep fall in Iran’s oil sales by ~60%. US for
instance have cut oil imports from ~2.5million barrels to ~1million barrels.
11
On 24th November 2013, Iran and other nations agreed to a deal via
which Iran will curb some of its nuclear activities in return for international
sanctions.
In addition to increased output in Libya and North America, increased
supply from Iran will compel oil prices to soften.
Global oil consumption is said to be ~90million barrels/day. Breakthrough
in Iran deal will unlock ~800,000 barrel/day of oil.
Oil prices gave a knee jerk reaction to the deal however many believe risk
still persist. Iran’s heavy water reactor at Arak continues to pose a risk of
deal reversal.
2010-11
2011-12
2012-13
2013-2014
2013-14 -> targeted figure
Oil Production (bbl/day)
10900000
9900000
8453000
Brent Crude
117
115
113
111
109
107
105
103
4231000
Russia
Saudi
US
Iran
