Iran says it can hit pre-sanctions crude output in two months

20 April 2016

Oil production has risen almost 500,000 b/d since sanctions were lifted in January

Iran is on target to increase its oil production to pre-sanctions levels in the next two months, according to the country’s deputy oil minister.

Since completing the nuclear deal in January, Tehran has been re-claiming the market share it lost during four years of sanctions against oil exports

Deputy Oil Minister Rokneddin Javadi was quoted by state news agency IRNA saying that pre-sanctions output would be reached by end of the Iranian month of Khordad, which falls on 20 June.

Iran was producing below 4 million barrels a day (b/d) and exporting 2.2 million b/d in late 2011 before the sanctions on exports were introduced.

According to Opec estimates, citing secondary sources, Iran produced an average of 3.29 million b/d in March compared with an average of 2.84 million b/d in 2015.

Before January’s nuclear deal, Iran said it could boost production by 500,000 b/d following sanctions relief and 1 million b/d by the end of 2016. It is now close to achieving the first of these goals.

The Iranian Petroleum Ministry has voiced its intentions to cooperate with other oil exporters to stabilise the global market after it has reached pre-sanctions production levels. Talks between Opec and non-Opec members in Doha broke down on 17 April due to Iran’s unwillingness to join a widespread freeze in production.

If Iran’s crude production approaches 4 million b/d later in the year, Tehran may be more willing to consider a multilateral deal to shore up the market.

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