Russian cbank says lifting of Iranian sanctions to depress oil price

MOSCOW, Jan 18 (PRIME) -- The lifting of anti-Iranian sanctions may foster Russian–Iranian relations, but also may put global oil prices under pressure, a representative of the central bank told PRIME on Monday.

On January 16, most of the sanctions on Iran were lifted after the International Atomic Energy Agency said that the country is about to meet nuclear requirements and to cut its nuclear arsenal.

“On the one hand, the lifting of sanctions against Iran may help develop Russian–Iranian cooperation in the field of energy, agriculture, the military industrial sector and other fields, so it will have a positive effect on the economies of both countries,” the person said.

On the other hand, it is likely to result in higher oil exports that will put prices for energy sources under additional pressure.

“At the same time, expectations of the lifting of sanctions against Iran were already priced in,” the representative said. “And uncertainty concerning volumes of supplies remains.”

Global oil prices were volatile on Monday -- they decreased to U.S. $27.71 per barel of Brent, a record low since December 2003 after the sanctions were lifted, and rebounded to about $29 per barrel.

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