Russia And Iran Look To Strengthen Grip On Global Oil Markets | OilPrice.com

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Russia And Iran Look To Strengthen Grip On Global Oil Markets | OilPrice.com
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Repeated statements from high officials in Russia and Iran that both countries are “determined to strengthen cooperation in all sectors” could strengthen the position of both countries in global oil markets

Russian and Iranian officials have signaled a new ‘Golden Age’ of cooperation between the countries.With unfettered access now to Russian technology and equipment, Iran should be able to significantly increase the recovery rate at its oilfields.

One of the factors that has held back crude oil production in Iran has been the low yield from its oil fields, which has hovered between the four to five percent range for years. This is not a function of any true difficulty in recovery – in fact, crude oil from the majority of Iran’s oilfields is as easy as from any other of the world’s easiest to produce oilfields in Iraq or Saudi Arabia, as attested to by the US$1-2 pb lifting cost in the country.

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