Iran Press/ Iran news: In an interview with the official IRNA news agency, Owji attributed this growth to the promotion of energy diplomacy and relations with Asian, African, and Latin American countries, which has helped Iran create new markets for selling its oil. He also promised that good news on oil sales would be announced in the coming months.
According to Owji, President Ebrahim Raisi stated that Iran's oil exports rose to 1.9 million barrels per day (BPD) in May. International institutes monitoring countries' oil exports have reported an increase in Iran's output and exports.
Last week, a Reuters report revealed that Iran's crude exports and oil output had reached new highs in 2023 despite U.S. sanctions. This has added to global supply when other producers are limiting their production. Tehran's oil exports have been limited since former U.S. President Donald Trump withdrew from a nuclear deal called the Joint Comprehensive Plan of Action (JCPOA) in 2018 and reimposed sanctions aimed at curbing oil exports and associated revenue to Iran's government.
However, the report continued that exports have risen during the term of his successor President Joe Biden. Iranian crude exports exceeded 1.5 million BPD in May, according to Kpler, a provider of flows data. There were around 2.5 million BPD in 2018 before the U.S. withdrew from the nuclear deal.
Iran's crude oil output has reportedly reached over 3 million barrels per day (BPD), accounting for approximately 3% of global supply, according to figures from the Organization of the Petroleum Exporting Countries (OPEC). This marks the highest level since 2018, with a source familiar with the matter confirming that output remains at this level. The International Energy Agency also estimates Iran's May production at 2.87 million BPD, which is close to Iran's official figure.
This increase in production comes as OPEC+ - which includes OPEC, Russia, and other allies - is cutting output to support the oil market, as expectations of economic weakness dent demand and pressure prices. However, some analysts suggest that Iran's production and exports have risen despite these cuts. SVB International estimates that crude production hit 3.04 million BPD in May, up from 2.66 million BPD in January, while exports of crude and condensate were reportedly at 1.93 million BPD in May.
In addition to crude oil, Iran has also been grappling with an oversupply of gas condensates. Before the current administration took over in August 2021, 87 million barrels of gas condensates stored offshore and onshore were reportedly challenging to sell due to sanctions. However, despite facing strict sanctions, the new administration has managed to sell these stored gas condensates and is currently trading around 800 barrels produced per day.
Overall, Iran's increased crude oil output could have significant implications for global supply and demand dynamics in the coming months as OPEC+ continues its efforts to stabilize prices amidst ongoing economic uncertainty.
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