Iran has said it plans to increase oil production by 5 lakhs barrels per day now as sanctions have been lifted under a nuclear deal with world powers. Deputy Oil Minister Roknoddin Javadi said, Iran is determined to retake its market share, which collapsed after the sanctions were imposed in 2012.
Analysts say, the decision is likely to bring down the price of oil further in the world market. Iran used to export 2.3 million barrels per day but its crude exports fell to one million in 2012. Oil prices have recently fallen to about 28 dollars a barrel, a 13-year low.
Yesterday, Organization of the Petroleum Exporting Countries, OPEC gave reassurance the price of oil will rebound later this year. It said, non-OPEC countries will be forced to slow down production, thereby reducing supply and boosting the price globally.