Price Of Oil Rises As Iran Possibly Halts Exports To Some EU Countries
Iran's re-emergence has sparked moderate panic on global markets. Photo: Spencer Platt/Getty Images

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Iran: Foreign companies move in after sanctions lifted

Foreign companies are jostling to be the first ones into Tehran, after the lifting of sanctions against the Middle Eastern country made it attractive for investment.

The return of Iran to the international market will see a flood of oil hit an already saturated market. Deputy oil minister Rokneddin Javadi announced yesterday that the state was looking to pump out as much as 500,000 barrels a day.

Analysts have warned that Iran is unlikely to get back to pre-sanctions levels of more than 2 million barrels a day immediately, due to the need for re-investment in the industry after years of sanctions.

After the successful conclusion of the nuclear talks between Iran and the United States and its allies, the country’s return to the markets was met with another fall in the in the price of a barrel of oil; with prices dropping to $28 yesterday, before stabilising.

In Dubai and Saudi Arabia, stock markets were sent tumbling by the Iran’s re-emergence, with reports that £27bn was wiped off in 24 hours. While shares in leading Saudi oil companies plummeted, some by as much as 7%, yesterday.

PricewaterhouseCooper’s global chairman Dennis Nally, told Reuters yesterday at the start of the World Economic Forum in Davos that PWC were seeing strong interest in Iran from their clients.

Russia is set to start selling military equipment to the country, with British Airways has announced that it is looking to begin flights to Tehran.

Oil price: Opec warns US and Canada to curb production

With the oil price dropping to $28 a barrel on the news of Iran’s re-emergence into the global energy market, oil producer cartel Opec have warned Canada and the US that they will have to begin curbing production to avoid even greater falls.

The price of oil has fallen 75% since 2014, sparking major problems for oil dependent nations like Saudi Arabia.

Opec suggested that the persistent low prices will begin to bite rival producers in the coming months, forcing the likes of Canada and the US to limit production.

Wind: Record breaking year for Denmark

Denmark produced a record 42% of all its energy from wind last year, despite two major wind farms being offline.

The figure represents a 3% increase on 2014, which itself was record breaking year.

The Guardian report that surplus wind energy from the country was exported to neighbouring Scandinavian states like Norway and Sweden.

The country’s energy minister  Lars Christian Lilleholt said he hoped Denmark could be “an example” for the rest of the world to follow.

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