Anyone concerned with Iran complying to the OPEC deal in the future should be more worried as a gigantic field of oil is ready to come online. The South Pars offshore field on the Iran-Qatar border was officially commissioned this week. The field contains 14 billion barrels of oil, which makes it one of the largest oil fields in operation. Initially, the production will be small; just around 35,000 barrels per day but likely to rose by many folds over the coming years. However, size is not the only thing that makes it a point of concern; it’s the advanced technology that has been used in the field.  Crude oil can be loaded for sale right at the wellhead.

While Iran remains one of three countries in the OPEC that has fully complied with the production deal, the increased production in February and the commission of this new well certainly adds to the worry that Iran might not comply fully in the future.

Supply concerns have already pushed oil prices lower by more than 10 percent in past few weeks. WTI is currently trading at $47.9 per barrel and Brent at $2.8 per barrel premium.