If Iranian oil returns to market, price of crude would drop another $10 a barrel: Experts

oil barrelWorld powers have offered to suspend US and European restrictions on Iranian oil exports, but only if the Islamic Republic accepts strict limits on its nuclear programme for at least a decade, according to American and European officials. The offer to begin lifting some sanctions within months of a deal comes amid the effort in Lausanne, Switzerland, to reach the framework of an agreement by the end of the month, with the outcome still in doubt.

Iran has yet to agree to such conditions in exchange for relief from oil and banking sanctions. Even if the Islamic Republic does, the limits on its oil exports would be suspended only after it complied with an initial set of restrictions, such as disconnecting the majority of the centrifuges it uses to enrich uranium and submitting them for verification, said the officials, who spoke to Bloomberg News on condition of anonymity.

Iran exports 1 million to 1.1 million barrels of crude per day, down from 2.5 million a day before strict US and European Union sanctions went into effect in mid-2012.

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