Oil prices fell Thursday on the prospect that agreement on a nuclear deal with Iran would result in restrictions on Iranian exports being lifted, adding to a glut on world markets.
But those sanctions aren’t the only impediment for Western oil companies seeking to do business in Iran. Another looming question is whether Tehran will make deals with enough profit potential for outsiders to make it worth their while, especially at a time of weak prices.
If the framework nuclear deal reached Thursdayleads to an eventual easing of restrictions on doing business in Iran, the country’s oil sector would be very alluring. The Islamic Republic holds nearly 10% of the world’s crude oil reserves, putting it fourth behind Venezuela, Saudi Arabia and Canada.
Read the full article at The Wall Street Journal.