Iran set to surprise oil market

TEHRAN May 19(Shana)–Leading oil producer Iran could even be set to surprise oil traders with a major surge in production, David Hewitt, the co-head of global oil and gas equity research at Credit Suisse, has said.

“At $66 to $67 (a barrel) for Brent we’re simply not pricing in the risk that Iran returns and increases its production in early July. That would have a significant downward effect,” he told CNBC.

His remarks came after an Iranian deputy petroleum minister said the country hopes its crude oil exports will return to pre-sanctions levels within three months once a deal with global powers to lift an oil embargo is finalized.

“We hope we can come back to the export levels that we had before the sanctions,” Reuters quoted Rokneddin Javadi, who is also the managing director of the National Iranian Oil Company, as saying.

“Yes, 2.5 (million barrels per day), around,” he said.

Javadi also said he expected the oil price to rise to around $80 a barrel by the end of 2016.