FX.co ★ Iran says it can double oil exports if market needs more barrels

The managing director of Iran's National Oil Company has said that Iran could double its crude oil exports if the world needs more oil.

Despite the stalling negotiations on the new nuclear deal that, if finalized, would see US sanctions on Iran removed, Iran stands ready to take full advantage of such a development.

According to Mohsen Khojastehmehr, Tehran will exert maximum effort to recoup its crude oil market share.

Iran has indeed been expanding its production and exports. Towards the end of last year, exports rose to some 1.6 million bpd, and remained at this level over the first quarter of this year as well.

China is by far Iran's biggest oil customer, taking in the bulk of what Iran exports despite the sanctions. To date, Iranian crude accounts for some 7% of total Chinese oil imports.

Due to disagreements between the Iranian and US sides, the nuclear deal, which could lead to a return of Iranian oil to international markets, has stalled. Against this background, oil prices continue to rise and are currently trading well above $100, at $114.

A glimmer of hope emerged earlier this month after a visit by the EU envoy on the issue to Tehran.

Following the visit, the EU's foreign policy chief Josep Borrell told the media that "the negotiations had stalled and now they have been reopened."

Yet it will be a while before Iranian exports resume in full.

"These kind of things cannot be solved overnight", Borrell said last week.