The Iranian parliament has voted to approve a law which will get things off the ground with regards to the country’s nuclear program and agreements upon it with the G6. A total of 161 members of the parliament voted in favour with 13 abstaining and 59 voting against.
The law should now be passed by Iran’s expert council which will give its conclusions upon the matter before 18th October, 2015. This means that that the agreement to monitor the Iranian nuclear program will come into force from this moment.
As such, there are practically no more barriers to be overcome for this agreement as the US Congress didn’t manage to block the agreement. This means that Iranian sanctions are on the verge of being lifted and so the country can increase its oil exports. This is a very positive fact for Iran, but at the same time it will have a critical impact on the oil market which is overflowing with supply. Pressure on the quotes is set to increase, even if Iranian oil exports don’t increase rapidly, increasing gradually.
Taking into account what is going on across world markets at the moment, coupled with an increase in the supply of oil, we believe that demand for oil will fall leaving Brent at $55-60 per barrel next year.