EIA: Iran to produce 600,000 more barrels of oil per day in 2016

US Energy Information Administration (EIA) said it expects Iran to increase oil production by nearly 600,000 barrels per day by the end of 2016, once international sanctions are fully lifted, Turkey’s Anadolu Agency reported.

“Iran is expected to increase production as sanctions are lifted,” EIA said in a report yesterday. “EIA estimates that Iran has the technical capability to increase crude oil production by about 600,000 b/d [barrels per day] by the end of 2016.”

“The pace and magnitude that will reach the market will be dependent on how quickly Iran can meet conditions triggering sanction relief and how successful Iran is in production and marketing operations” which the agency expects to occur in the second half of 2016.

“Lower world oil prices in 2016 likely will result in lower non-OPEC production and slightly higher consumption, largely offsetting the higher Iranian production.”

Saudi Arabia and other members in the Organisation of the Petroleum Exporting Countries (OPEC) are unlikely to reduce their oil production, to accommodate the additional Iranian supplies.

The World Bank said in a recent report that the lifting of sanctions will have a significant impact on the global oil market, Iran’s economy and its business partners.

The bank said that Iran’s full return to the global market will add about one million barrels of oil per day and that oil prices will reduce by $10 a barrel next year.