Rise in Iran oil flow post-sanctions may hit Iraq most

Dubai

A POSSIBLE surge in Iranian oil exports from an end to sanctions will reboot a struggle between top Middle East producers for Asian buyers, with Iraq looking the most vulnerable. The latest twist to the saga of aggressive marketing is the world oil glut and low prices, likely to fall more with added Iranian crude, making Teheran's battle for market share tougher.

"You cannot produce without demand. There is a limit in any market and also long-term contracts between Gulf oil producers and Asian refiners," said a Gulf oil source. "That's why it is hard to imagine big volumes just eating into the market share just like that. Even if the Iranians offered discounts and sold on the spot market, there is a limit."