Iran oil boost on hold for now

Global oil markets won’t feel the real impact of Iran’s historic deal with world powers until 2016 as sanctions remain in place while nuclear inspectors go to work, said banks including Citigroup, Goldman Sachs Group and Commerzbank.

Opec’s fourth-largest member won’t achieve a crude-export boost of more than 500,000 barrels a day, or about 50%, until next year as Iran’s compliance with curbs on its nuclear programme is verified, the banks say.

The nation will probably choose to gradually increase its exports once sanctions are lifted, rather than risk lowering prices by rapidly pushing crude into an oversupplied market, according to the International Energy Agency.