Following the news of the agreement reached between Iran and the world powers regarding the country's nuclear program, Reuters on Jan. 10 published unofficial information obtained�from unnamed sources in Iran and Russia�about a�deal in the works to exchange�Iranian oil�for Russian goods.
The sources of the leaked�information�reported an agreement to provide 500,000 barrels of oil�per day (25 million tons a year) in exchange for Russian equipment and goods. This is a substantial�amount of oil.�For comparison, it is about the same as the entire daily�oil production of Ecuador (which, although�the smallest producer, is still a member of the Organization of Petroleum Exporting Countries [OPEC]).�As a result of the sanctions by the United�States�and the European�Union�initiated in 2011, Iranian oil exports decreased from 2.5 million barrels per day to their current level of 1 million, so for Iran�a deal with Russia�would mean a 50% increase in exports.

The leaked price was�$1.5 billion a month, or�approximately $100 per�barrel, the current market price. Compared with the $7 billion overall Iran will gain�from the partial lifting of sanctions, this looks like a much more attractive alternative.

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