IEA Says More Sanctions on Iran May Push Crude Prices Higher

Tougher international sanctions on Iran may lead to higher global crude prices and a decrease in output capacity for OPEC’s second-largest oil producer, the International Energy Agency said.

A proposed European Union ban on purchases of almost 600,000 barrels a day of Iranian crude would “likely” force refiners in the Mediterranean region to pay more for oil from other suppliers, the agency said in a report released today. Iran’s production capacity will decline by 890,000 barrels a day to less than 3 million barrels a day by 2016 if the EU also blocks sales, as it is considering, of oil-related equipment and services to the Persian state, the IEA said.