Iran will augment Opec's clout

IRAN's nuclear agreement with six global powers is decidedly bearish in an oversupplied oil market. When those supplies start emerging down the road, they will add to the arsenal of the Organization of the Petroleum Exporting Countries (Opec), fighting for leverage.

Iran was producing about four million barrels per day (bpd) before sanctions were tightened in 2012. The output and exports are now down by a million bpd each. It produced as much as six million bpd before the revolution.

Thus the potential for substantial production and exports, given Iran's huge oil and gas reserves, is immense. Teheran plans to lure majors with liberal terms.

Iran holds roughly 30 million barrels of the global inventories. Releases from that stockpile will add to the two million bpd supply overhang. Further, there is a…