Fitch: Oil, Gas Prices May Decrease If Iran Sanctions Eased

13920801000168_PhotoIThe International Credit Rating Agency (Fitch) said that oil and gas companies may see prices come under pressure in 2014 if the US-imposed economic sanctions on Iran are eased as a result of improving relations between the two countries.
This could see Iran increase the supply of oil on world markets by around 800,000 barrels per day leading to a downward impact on prices.

Our current oil and gas corporate price deck shows a decline in the Brent oil price of 6.8% in 2014 and a decrease in the aggregate capital expenditure (capex) of the seven western European upstream and integrated companies with the rate of 5.9% in the same period, the Islamic republic news agency reported.

This is roughly equal to a $7.2bln reduction in capex for the European oil and gas sector in 2014.

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