Mixed opinions over future oil prices as Iran enters market

Some analysts suggest that the return of Iranian oil exports has already been priced in, others disagree.

FILE: Barrels of crude oil. Picture: Freeimages.

JOHANNESBURG - There is mixed opinion over the future of oil prices with Iran entering the market due to the lifting of sanctions.

Brent crude is still at historic lows and is currently trading at around $28,82 a barrel.

The past 12 hours has seen oil producers weighing in on the way forward with fears of prices plummeting due to added oversupply.

Iran, a member of the Organisation of the Petroleum Exporting Countries (Opec) has issued an order to increase production by half a million barrels a day.

This was after the US and European Union announced at the weekend that sanctions were being lifted as Iran had met the requirements in terms of its nuclear deal.

Some analysts suggest that the return of Iranian oil exports has already been priced in, while others disagree.

HSBC chief executive Stuart Gulliver says the price of oil is likely to settle between 25 and 40 dollars a barrel in a year's time.

In the meantime, reports say at least a dozen Iranian super-tankers have been filled with Brent crude and are ready to trade.