Oil Higher on Tehran Output Timing

A day after an Iran nuclear deal was finally reached oil prices edge higher as investors recognized it would take time for Tehran to raise output, but the eventual increase in its exports will add fuel to a market already plentifully supplied.

Under the agreement, sanctions imposed by the United States, the European Union and the United Nations are to be lifted in exchange for curbs on Iran’s nuclear program.

“New oil will not flow from Iran until 2016 and there will probably be less of it than optimists predict,” said Richard Nephew, Program Director for Economic Statecraft, Sanctions and Energy Markets at the U.S. Center on Global Energy Policy.