Abu Dhabi: Oil prices fell on Tuesday after Iran and six major world powers reached a historic deal over the Islamic Republic’s controversial nuclear enrichment programme even though it may take many months before the country could ramp its oil production and pump into the markets.

Brent, the international benchmark for crude oil, fell by almost 2 per cent at 3:06 pm UAE time on Tuesday to $56.70 (Dh208.1), the lowest in a week and West Texas Intermediate was down by more than 2 per cent to $51.13.

According to analysts, oil prices going to remain weak in the next few days and it could take six to nine months before Iranian oil enters into the market.

“Any prospect of Iranian oil would be bearish on the markets which is already oversupplied and weighed down by problems in Chinese stock markets and Greek crisis,” Richard Mallinson, an oil analyst at London-based Energy Aspects, told Gulf News by phone.

“We forecast Iranian oil to enter the market in 2016 which will be about 250,000 to 400,000 barrels of oil per day.”

An important member of the Organisation of the Petroleum Exporting Counties (Opec), Iran has the world’s fourth largest proven oil reserves after Saudi Arabia, Venezuela and Canada.

The country’s annual production is estimated to be about 2.8 million barrels per day (bpd). Exports stand at about 1.1 million bpd, half their pre-sanctions level, according to data from the US energy department.

A report released by Washington DC-based SVB Energy last week staked that Iran would probably be capable of adding up to 800,000 barrels of oil per day to its production in the next six to twelve months.

According to it, Iran would need at least $70 billion of investment to reach its midterm production capacity goal by 2020.

Iranian Oil Minister Bijan Zanganeh said the country can increase exports by 500,000 barrels per day as soon as sanctions are lifted, and then an additional 500,000 per day in the following six months.

Francisco Quintana, head of economic research at Asiya Investments said Iran’s capacity to expand production now is very limited.

“The impact will not be noticed before 2016, and that will happen only if heavy investment is undertaken. The Iranian government has no money now, and international firms are cutting investment across the world on account of low prices,” he said in an emailed statement to Gulf News.

He said competition among Opec countries to control market share will go up but will not be a game changer in the medium term in the oil market.

“I think that the most interesting developments in Iran will take place in the non-oil sector.”

Oil prices fell by more than 50 per cent in the last one year due to weak demand record oil production from the US shale sector. From $115 in June last year, oil prices plunged to less than $50 in January recovering later.

George Booth, an energy expert at international law frim Pinsent Masons said the Iranian deal, will pave the way for a new era of Iranian natural resources and will open the door to international developers queuing up to re-enter the potentially lucrative market.

“Iran is ambitious about the contribution it can make to global hydrocarbons with some sources estimating one million barrels per day hitting the export market in just two months once sanctions are lifted. Even with a more conservative outlook, today’s news could be a game changer at a time when the global oil industry has been in a state of flux.”

He, however, advised developers to temper enthusiasm until the complex web of sanctions are fully unwound over the coming months.