Iran Oil Comeback That Startled Doubters Approaches Roadblock

Market Reaction

A series of output disruptions from Nigeria to Canada and Venezuela has meant that the extra Iranian oil has been easily absorbed by the market rather than depressing prices, said Mike Wittner, head of oil market research at Societe Generale SA in New York. Crude futures recovered to more than $50 a barrel last week, nearly double the 12-year low reached in January. With Iran’s comeback almost complete and global demand rising, traders are starting to wonder how much world markets will tighten in 2017, he said.

“By the end of this year Iran will be maxed out,” said Wittner. “Is it bullish? Yeah. When I look around the world and I need a bit more OPEC crude, I ask myself where it’s going to come from.”

--With assistance from Hashem Kalantari and Golnar Motevalli. To contact the reporters on this story: Anthony DiPaola in Dubai at; Grant Smith in London at To contact the editors responsible for this story: Nayla Razzouk at; James Herron at Dan Stets


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b  |  June 18, 2016
Nonsense. Iran is drilling 24/7 and has the biggest concentration of drilling rigs in one place at one time just now, they have the ability and resources and investment will come.

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