– This is the script of CNBC's news report for China's CCTV on February 16, Tuesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
When to reach a new equilibrium still decides the next step for oil prices
-- so far, lots of uncertainties -- but one thing is for sure... Iran is coming back to the market.
Iran says it has exported its first crude oil shipment to Europe since it reached a landmark nuclear deal with world powers.
IRNA quoted Deputy Oil Minister Rokneddin Javadi as saying the shipment was the first in five years and marked "a new chapter" in Iran's oil industry.
Iran is targeting at its two prime customers: Asia and Europe.
While some Asian buyers continued doing business with Iran at reduced rates during sanctions -- roughly 1 mn bpd consumed by China, India, Japan and South Korea, Europe had imposed a total embargo.
In addition, Iran has lowered its prices to refineries along the Mediterranean Sea in an effort to compete with rivals like Saudi Arabia and Russia, which had moved to grab Iran's market share when it was driven out of Europe.
Despite talks between OPEC and non-OPEC countries, some analysts see little possibility of a production-cut or freeze agreement.
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[AZLIN (t) AHMAD Argus Media Limited Editor, Crude Oil ] "062458 If Iran doesnt cut production or freeze, its unlikely, its doubtful that Saudi Arabia or UAE or Russia would want to shoulder that production cuts because they would also want to remain or increase their market share.So I think at this point, even though there are discussions, the chances of coodinated production cuts or freeze, I think its limited. 062523 "
(CCTV FF SAUDI VS IRAN OIL STATS)
Just a quick comparison between Saudi, the No.1 oil producer in OPEC, and Iran, which used to be the No.2 in the organization.
The country used to export 2.3 million barrels per day but its crude exports fell to 1 million in 2012. Iran's total production currently stands at 3.1 million barrels per day.
Iran said in January that it will add to its production despite the drop in prices and should not be blamed for the further price drops.
And apparently, retaking its market share, is Tehran's ambition.
CNBC's Qian Chen, reporting from Singapore.
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