Fitch: Oil, gas prices may decrease If Iran sanctions eased

The International Credit Rating Agency (Fitch) said that oil and gas companies may see prices come under pressure in 2014 if the US-imposed economic sanctions on Iran are eased as a result of improving relations between the two countries. This could see Iran increase the supply of oil on world markets by around 800,000 barrels per day leading to a downward impact on prices. Our current oil and gas corporate price deck shows a decline in the Brent oil price of 6.8% in 2014 and a decrease in the aggregate capital expenditure (capex) of the seven western European upstream and integrated companies with the rate of 5.9% in the same period, the Islamic republic news agency reported. This is roughly equal to a $7.2bln reduction in capex for the European oil and gas sector in 2014.