Iran's Increase in Oil Exports Will Affect Global Demand

The additional oil that Iran plans to put on the global market are likely to increase pressure on demand, Russian Energy Minister Alexander Novak said Friday.

MOSCOW (Sputnik) — Last month, Iran announced plans to increase its oil exports by 500,000 barrels a day by the end of November. The move follows the West's gradual lifting its anti-Iran sanctions, including its ban on sales of Iranian oil to EU and some Asian customers, conditional to Tehran guaranteeing the peaceful nature of its nuclear activities.

"Of course, these extra volumes will increase pressure of the offer on the demand <…> This extra oil from Iran should be taken into account in the overall balance. Of course, we do it in our forecasts," Novak said in interview with the Rossiya-24 television channel.

He noted that every exporting country had the right to make its own decisions about how much it produces, how much it sells and at what price.

In July, Iran signed a historic deal with the P5+1 group of international mediators, comprising Russia, the United States, China, the United Kingdom, France and Germany, to ensure the peaceful nature of its nuclear program in exchange for sanctions easing.

According to the US Energy Information Agency (EIA), the Western sanctions imposed on Tehran over its nuclear program have nearly halved Iran's crude oil export revenue since 2011.