Iran faces challenges in ramping up its production – Moody’s

By FXStreet Moody’s Investors Service, in its report released today, said Iran’s return to the global oil market will add supply to an oversaturated market, but the country faces challenges in ramping up its production.

Key Points

“Iran will add more than 500,000 barrels per day (bpd) to the global oil market in 2016, putting more pressure on prices”

“However, Iran still faces significant hurdles to boosting its oil production meaningfully beyond those levels”

“To raise production Iran needs to regain its customer base, attract investment to upgrade its oil fields and successfully navigating a range of political risks”

“Another hurdle for Iran is its ageing oil infrastructure, which industry experts say requires $150 billion-$200 billion in capital investment to modernize”
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Source:: FX Street