LOC11:42
08:42 GMT
By Fawaz Karameh
KUWAIT, Aug 1 (KUNA) -- As much as the current decline in the Chinese market, the crisis in Greece, and other aspects played in affecting the global oil price, the Iranian nuclear file will have an additional "psychological" impact on the market, said an analyst on Saturday.
Oil analyst and head of Al-Ofuq (horizon) administrative consultancy Dr. Khaled Bodai told KUNA that the global forecast saw oil being at USD 70 and 75 per barrel margin, noting that if inflation is taken into consideration, the fair price should be at USD 90 pb.
Touching on the Iranian nuclear deal, Bodai said that its impact will be short-lived, adding that the increase in Iranian oil output, by one million barrel per day, might require two years, provided that the infrastructure becomes available.
He went on saying that the expectations for the increase in global production of the "black gold" for the current year will be set at 1.5 barrels per day which means that the global market might likely absorb the increase production from Iran.
Regarding the decline in the price of oil, Bodai said that there was a surplus in supplies by one to 2.5 million bpd and that was due to lack of commitment on parties to adhere to the OPEC's production quota of 30 million bpd, said the analyst.
The decrease in the quota will lead to absorbing the surplus in supplies and thusly push the price to USD 75 pb, said Bodai.
The analyst also touched on production outside the capacity of OPEC, noting that production reached 830,000 bpd.
He said that the uncertainties emitting from the crisis in Greece and the Iranian nuclear file played part in that estimated number. (end)
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