Guinness's Waghorn: Iran's entry to the oil market will extend price volatility

Could change OPEC sentiment

Jonathan Waghorn, deputy manager of the Guinness Global Energy fund, has warned Iran's entry to the oil market could delay the rebalancing of a 700,000 barrel global oversupply, leading to additional months of price volatility.

Waghorn (pictured) said Iran's pledge to export around 500,000 barrels of oil a day, after the lifting of 36-year-old sanctions, will counter the effects of an accelerating decline in US oil production and the stagnation of OPEC supply. "US production is currently dropping by around 100,000 barrels per day per month and OPEC's production has stagnated, while world demand is growing by around 100,000 barrels per day per month," he said. "If this continued, it would take around three and a half months for the oversupply to be consumed, allowing prices to begin to stabilise at around $65...