Iran has discovered a new oil field with reserves estimated at more than 50 billion barrels, increasing the country’s total reserves by a third – and it has the potential to alter oil prices around the world.

“I am telling the White House that in the days when you sanctioned the sale of Iranian oil and pressured our nation, the country’s dear workers and engineers were able to discover 53 billion barrels of oil in a big field,” Iranian President Hassan Rouhani said of the discovery.

While 53 billion barrels is certainly the biggest find of 2019, and the largest in some time, the field itself has not been developed for extraction.

On top of that, Iran is facing some difficulty in selling the oil it already produces abroad due to US sanctions in place.

But will this have any effect on Aussie petrol prices?

Finance and household expert at Comparethemarket.com.au, Rod Attrill told Yahoo Finance that, for the immediate future, global oil prices were “not likely to be heavily influenced by the recent Iranian oilfield discovered”.

“We also shouldn’t expect to see any fuel price reduction in the short-term from this, as it can take several years to get crude oil out of the ground and along a transport route to get the barrels refined into usable products like petrol, diesel, and jet fuel,” Attril said.

But in the long-term, it’s a different story.

“Long-term, this discovery has the capacity to keep oil prices in check.”

The discovery follows a surge in global oil prices earlier this year when attacks on a Saudi Arabian key oil facility cut the nation’s production by half – pulling 5 per cent of the world’s oil supply off the market. 

At the time, domestic prices didn’t react to the news.
“There are ample commercial stocks globally, and that’s the key to making sure that this is as manageable as possible and that the impact is minimised,” Energy Minister Angus Taylor told the ABC.

Extracted from Yahoo Finance