Oil price reaction has muted after the commodity initially fell by more than $1 a barrel following a deal with Iran on limiting nuclear activity in return for lifting economic sanctions.

News of the deal sent the Brent crude price down $1.15 to $56.70 a barrel, while US crude fell $1.05 to $51.15.

Later, Brent crude was down 33 cents - or 0.6% - while US crude was up 27 cents, or 0.5%.

The lifting of sanctions is expected to see a surge in Iran's oil output.

Iran could increase its oil exports by up to 60% within a year, according to a survey of 25 oil analysts questioned by the Reuters news agency.

Twelve of those polled believe Iran could raise oil output by up to 250,000 barrels per day in the first six months, while eight others predicted it could increase by as much as 500,000 barrels.

Nuclear inspectors will want to verify Iran's compliance with the terms of the deal before lifting sanctions, but the country's Oil Minister Bijan Zanganeh is confident the country can reach full capacity quickly.

Sarosh Zaiwalla, a London-based lawyer specialising in sanctions, said there was huge excitement, despite the potential problems ahead.

"Sanctions have crippled Iran's oil production, halving oil exports and severely limiting new development projects.

"Foreign trade and investment will allow Iran to make huge efficiencies and drive down the cost of production."

Edward Morse, global head of commodities research at Citi in New York, said that after years of underinvestment there would be a long delay before exports reached their full potential.

"Sanctions have clearly impaired Iran's ability to maintain its mostly mature oilfields, let alone develop new projects," he said.

It is predicted that even a modest initial increase in output will pull international oil prices down further as the market is already producing around 2.5 million barrels per day above demand.

Amrita Sen, chief oil analyst at London-based consultancy, Energy Aspects said, "Given how oversupplied the market is with Saudi output at record highs, the mere prospect of new oil will be bearish for sentiment."

http://www.bbc.com/news/world-europe-33518131

Hmmm... What are we going to do?

Thank God we now have a more prudent president to manage our affairs.

With PMB, even if the crude sells for $40 a barrel, I am sure he will achieve far better results than GEJ whose regime couldn't do much at $100 a barrel.

What we witnessed with GEJ has confirmed that it's not about how much resources you have but how judiciously you can make use of what you have.

GEJ was a prodigal leader!

PassingShot:
Thank God we now have a more prudent president to manage our affairs.

With PMB, even if the crude sells for $40 a barrel, I am sure he will achieve far better results than GEJ whose regime couldn't do much at $100 a barrel.

What we witnessed with GEJ has confirmed that it's not about how much resources you have but how judiciously you can make use of what you have.

GEJ was a prodigal leader!

you are on a long thing. The jungle must fall

PassingShot:
Thank God we now have a more prudent president to manage our affairs.

With PMB, even if the crude sells for $40 a barrel, I am sure he will achieve far better results than GEJ whose regime couldn't do much at $100 a barrel.

What we witnessed with GEJ has confirmed that it's not about how much resources you have but how judiciously you can make use of what you have.

GEJ was a prodigal leader!

I think it's too early to compare Buhari with GEJ

feldido:
Hmmm... What are we going to do?

It is very simple!this administration stops its media campaign and get to work!.
It is an oil glut with a serious supplies in the market.the best is to start producing g our own things(cars,buses,train systems phones,food,virtually anything g).
It means we have to force private investor confidence into tour economy and not to be stuck in neutral making gestures at the same economy!

PassingShot:
Thank God we now have a more prudent president to manage our affairs.

With PMB, even if the crude sells for $40 a barrel, I am sure he will achieve far better results than GEJ whose regime couldn't do much at $100 a barrel.

What we witnessed with GEJ has confirmed that it's not about how much resources you have but how judiciously you can make use of what you have.

GEJ was a prodigal leader!

I remember a couple weeks ago about this same oil price drop, and you were quick to blame the past administration for not diversifying the economy.

You sounded sane when you answered my question about any other Nigerian leader diversifying from oil, because you couldn't give me one. Its a shame to see this sir.

What is happening was bound to happen eventually. It could have been in any administration including Buhari's. Its simple economics 'don't put all your eggs in 1 basket'

Prices might have averaged $100 under GEJ, hence the massive infrastructural projects carried out more than any previous administration (hoping to be proved wrong).

Point is, pray the prices rise so that PMB can achieve more instead of pegging it at $40. Because without finances, his promises are as good as mere words.

conspiracies!!!! world order!!!!

Good news. Ppl will soon flood Nnewi and Aba for jobs wen multinatiönals starts folding up

Too bad.

baralatie:

It is very simple!this administration stops its media campaign and get to work!.
It is an oil glut with a serious supplies in the market.the best is to start producing g our own things(cars,buses,train systems phones,food,virtually anything g).
It means we have to force private investor confidence into tour economy and not to be stuck in neutral making gestures at the same economy!

media campaign is what this government knows best. they probably need more time to learn good governance

more money for smart forex traders.

join the team

https://www.nairaland.com/2453421/real-time-free-forex-trading#35887673

rusher14:
It is a world in which information travels at the speed of thought. This can change public perception, galvanising a mob to action or a team to success.

If some people's Messiah got lost in this new world of opinions and suggestions, perhaps he wasn't the Messiah.

A country does not diversify in 6 weeks. 6 years maybe, 16 years of course, if that was the intention.

A leader who fails in the time of plenty cannot be trusted to succeed in the time of austerity.

A methodical approach in administration often requires sacrifices, synergy and sometimes rocking the boat.

The status quo morphs with a paradigm shift. The time of reckless spending is well and truly behind us.

Reality dawns and a new approach beckons.

so who are you referring to??