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Published on : Jun 17, 2015

Iran’s petroleum minister Bijan Zangeneh estimates that a nuclear agreement between his nation and six world powers would benefit Iran. Bijan Namdar Zangeneh has been Iran’s oil minister since 15 August 2013 and is now faced with the colossal task of reviving Iran’s oil and gas industry. The oil market does not worry the minister as the barrel price is still less than US$10 and the minister says it’s the same price in all of the Middle East.

Zangeneh wants to increase exports to international markets and raise the export levels to the levels that were present before the sanctions were imposed. He said his country wants to export oil and gas. Iran exports approximately a million barrels of oil in a day, and once the nuclear agreement is final the amount is anticipated to double. Recently oil prices have plummeted as major oil producers such as Saudi Arabia have amplified supplies.

The petroleum minister says that Iran wants to multiply its production and capacity. Zangeneh also stated that oil has been Iran’s main economic factor since centuries. According to the minister gas is also gaining in importance. Meanwhile, the U.S. oil prices have fallen further on Tuesday. Greece and its debt crisis has been blamed for the situation by dealers. Analyst Sanjeev Gupta is of the opinion that the nuclear agreement between the world powers and Iran could be a significant factor.

Iran’s nuclear agreement target on June 30 could be a vital factor that affects investors. If the agreement is confirmed Iran’s economic sanctions could be scaled back slowly. The sanctions were imposed in 2012 and is applicable to the petroleum industry among other areas. Iran has the fourth largest oil reserves globally. The sanctions have constrained Iran’s petroleum output substantially.