Market Watch: "Russia can play a crucial role in regulating the global energy market"
The US financial publication Market Watch wrote that Russia could become a driving force for the stabilization of the world oil market. While oil leaders are worried about the impact of the lifting of sanctions against Iran, Russia can play a crucial role in regulating the global energy market.
If Moscow decides to reduce the amount of oil, it will cause a chain reaction reduction of petroleum products from other producer countries. Accordingly, Saudi Arabia will have to rethink the price of oil, as the decline by a third since the beginning of December has had a very negative impact on the world economy as a whole. In recent months,Saudi Arabia has been producing oil in extremely high volumes, which led to the fact that a barrel began to cost less than $30, while in the summer of 2014 the price of oil was $100 per barrel. This was largely due to the fact that the US, in turn, increased the production of shale oil. Such a move by the Americans is concerning during a slowdown in global demand.
The fall in oil prices has led to the fact that each exporting country was forced to defend its share on the market with extensive mining. In addition, OPEC's decision not to impose production quotas was a direct challenge to the Russian government, which was forced to defend its interests in the current economic situation.
According to the analysts, as soon as the sanctions against Iran are lifted the energy market will be overwhelmed by another wave of speculation and panic, and the situation will only change in 2017. However, if Russia decides to reduce the rate of production, it is likely that stabilization will occur much earlier. It is necessary for Saudi Arabia to be guided by a more flexible policy on oil production.
At the moment there are all the preconditions to resolve the situation on the international oil market, but, for this, all the key players have to decide on a balanced action on the export of petroleum products.
The US media resource CNN wrote that Iran is out of the shadows with a huge untapped potential. After 10 years of isolation, the last major market in the world is opening its borders. Logically, the lifting of sanctions against Iran comes just at the time when the World Economic Forum is beginning. Just two years ago, speaking in Davos, President Rouhani stood in front of a filled hall and said that his country wants to get out from the shadow of the sanctions. Now Iran is on the verge of a brand new page in its history.
The Iranian authorities plan to immediately increase oil production by about 500,000 barrels a day. The next priority for the Iranian economy will be to access $150 billion of frozen assets. Analysts have called Iran the ‘Germany of the Middle East.’ But in contrast to Germany, Iran has enormous natural resources. It has 7% of the world's mineral reserves, amounting to about $750 billion. The World Bank and the Institute of International Finance believe that Iran's economy can grow by 6%, and Iran will be one of the world leaders, surpassing Europe and the US.