Iran won the significant bargain from region rival Saudi Arabia from the last OPEC meeting. It sped up the renewal of its sanctions-ravaged energy industry when the state producer signed a new-model oil investment contract.
National Iranian Oil Co. agreed to the framework of a $2.2 billion deal with Persia Oil & Gas Industry Development Co. to increase output at three fields along the country’s western border with Iraq, as said by Oil Minister Bijan Namdar Zanganeh.
Tasnim news agency reported that a second contract will be signed with a local company on Wednesday. Zanganeh said that the new type of contract which is designed to better reward investment in crude and natural gas production is crucial to increasing the country’s long-term export potential.
The market steadied for gold after the biggest collapse in gold futures prices in almost three years.
Gold futures for December slipped 0.1 percent to $1,268.60 an ounce on the Comex in New York, after dropping 3.3 percent on Tuesday. Prices are down 7.9 percent since a July peak as expectations for tighter monetary policy in Europe and the U.S. chipped the appeal of the metal.Adam Finn, who oversees precious metals at Triland Metals and was short gold said, “The gold bull has been given a good scare. It’s not dead yet, we could drop down to $1,172 and still see a medium-term continuation of the move higher.”