Oil market shaken by Iran's plan to boost output

With sanctions lifted, country eyes additional 500,000 barrels of oil per day, pushing crude price down to 13-year low.

Iran has said it plans to increase oil production by 500,000 barrels per day now that sanctions have been lifted under a nuclear deal with world powers.


Analysts say the decision is likely to bring down the price of oil further in the world market.

Iran used to export 2.3 million barrels per day but its crude exports fell to one million in 2012.

Oil prices have recently fallen to about $28 a barrel, a 13-year low.
With the lifting of the sanctions taking centre-stage, the UAE's energy minister said in Abu Dhabi on Monday that any extra supply of crude oil would "harm the market."

Moody's said Iran's increased oil production "will contribute to higher growth" next year, with "positive spillover effects" on higher investment and consumption spending.

Iran's economy is expected to grow four percent to 5.5 percent in 2016 and 2017, largely due to higher oil production.

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