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It's a terrible time for Iranian oil: RBC's Croft

The United Nations announced the removal of Iran's Bank Sepah and its international subsidiary from a sanctions list on Monday. The move has reignited investor's concern about new Iranian crude entering the oil market.

This is a terrible time for the Iranian barrels to come back, but how fast do the Iranians want to bring their oil? RBC Capital Markets' Helima Croft asked on Tuesday on CNBC's "Closing Bell."

"They have about 36 million, 40 million inflows in storage … they could probably sell that as soon as they want," the global head of commodities strategy noted, saying that it's a question of Iran's own timing.

The International Energy Agency reported Tuesday that global oil demand decreased from a five-year high of 2.1 million barrels per day in the third quarter, to a one-year low of 1.0 million barrels per day in the fourth quarter of last year.

Market watchers are eyeing the Middle East for a possible market share war, and Iran may be undercutting oil prices, but the oversaturation in the crude market is still a concern, Croft said.

"Are they going to deeply discount? And that's the concern, furthering the race to the bottom in terms of prices," the expert told CNBC.