Iran crude production rises sharply

13 April 2016

Iranian output increase in March offsets fall in UAE volumes, says Opec report

Iranian crude production has increased almost 350,000 barrels a day (b/d) since sanctions were lifted against its energy sector in January, the latest Opec figures show

Iran produced an average of 3.291 million b/d in March compared with 2.944 million b/d in January, according to the 13-member organisation’s data, based on secondary sources.

The increase in Iranian production was partially offset by a drop in UAE output, which fell 100,900 b/d from February volumes to 2.682 million b/d in March. This is unusually low for the UAE, which produced an average of 2.85 million b/d in 2015, according to the same data.

Opec increased production by 14,900 b/d in March month-on-month to 32.25 million b/d, with Iraq and Angola also increasing volumes and output dropping in Libya and Nigeria.

Several Opec and non-Opec exports, including Russia, are set to meet in Doha on 17 April to discuss a widespread freeze on oil production volumes.

Oil producers are attempting to alleviate the global oversupply that has caused prices to plunge since mid-2014. Iran has indicated that it would be unwilling to freeze production until it reaches pre-sanctions volumes.

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