Energy trader: US may let sanctioned Iranian oil onto market to reduce prices

The US may allow more sanctioned Iranian oil onto global markets even without a revival of the 2015 nuclear accord, according to a Sunday report that quoted a major independent crude trader.

"Uncle Sam might just allow a little bit more of that oil to flow," Mike Muller, head of Asia at Vitol Group, said Sunday on a podcast produced by Dubai-based Gulf Intelligence, Report informs, citing Bloomberg.

"If the midterms are dominated by the need to get gas prices lower in America, turning a somewhat greater blind eye to the sanctioned barrels flowing out is probably something you might expect to see," he added. "US intervention in these flows has always been pretty sparse."

Iran increased oil exports in 2022, most of which went to China. The new agreement on the nuclear deal, according to experts, would ensure the flow of an additional 500,000 to 1 million barrels of Iranian oil to the world market. In addition, Tehran can quickly sell oil from reserves, which amount to about 100 million barrels.

Muller notes that experts' forecasts regarding the future direction of oil prices are seriously divergent. OPEC+'s decision to accelerate production ramp-up is unlikely to have a major impact on the market, as many of the coalition's countries cannot keep up with production increases, and exports from Moscow may fall due to new sanctions.

"The range of analysts' opinions has never been so wide," says Muller.