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Iran's Oil Market Return Not Yet Fulfilling Grand Promises

  • Nation had pledged to boost exports by 50% within weeks
  • Banking and logistical hurdles said to constrain sales
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What Is the Market Missing on Oil?

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Iran’s return to global oil markets after sanctions were lifted isn’t living up to the country’s grand ambitions, or at least not yet.

Six weeks after the historic nuclear deal that allowed Iran to resume oil sales around the world, the OPEC member is shipping barely a third of the extra 500,000 barrels a day it had vowed to unleash within weeks of sanctions being lifted. The country faces hurdles at every step, whether reviving output from aging oil wells or overcoming lingering banking constraints that have forced it to sell crude in barter arrangements, according to BNP Paribas SA.