Reuters reported on Monday, October 1st, that Iran's oil production has once again declined in September. Since the U.S. withdrawal from the JCPOA on May 8 of this year, Iran's oil production has decreased every month. OPEC's official statistics indicate that Iran's oil production fell by 235,000 barrels per day from May to August. Considering the figures provided by Reuters for September, the daily decline in Iran's oil production since the U.S. exit from the JCPOA reaches 335,000 barrels, which is approximately 9 percent of its total crude oil production last year. However, Reuters estimates that the decline in Iran's oil production from May to September is 370,000 barrels per day. The agency assessed Iran's daily oil production in September at 3.45 million barrels. Reports of continued production declines in Iran come as Ali Kardar, CEO of the National Iranian Oil Company, announced on October 1st that 'Iran has no plans to reduce oil production and will continue to produce at full capacity.' He also stated that Iran has no issues receiving payment for its oil exports. The decline in Iran's oil revenues occurs against the backdrop of a significant increase in revenues for other OPEC members. Iran's oil exports have rapidly decreased in recent months, and Bloomberg recently reported that Iran has 13 million barrels of unsold oil stored in tankers anchored in the Persian Gulf. According to the official website of the National Iranian Oil Company, a contract for the construction of crude oil storage tanks in the port of Jask, with a capacity of 10 million barrels, was signed between this company and two domestic firms on Sunday. Mr. Kardar stated during the signing ceremony of this 200 million euro project that it would be completed within three years. During the first round of sanctions on Iran before the JCPOA was signed (2012 to 2015), Iran had stored tens of millions of barrels of unsold oil in onshore and offshore storage facilities, which it sold after the sanctions were lifted. Due to the decline in exports, Iran was also forced to reduce its oil production by one million barrels per day. U.S. oil sanctions against Iran will be implemented in November (November 4 this year). Predictions indicate that Iran's daily crude oil exports will drop from 2.1 million barrels last year to about one million barrels in November. Reuters writes that despite the continued decline in oil production in Iran and Venezuela, other OPEC peers have increased their production. According to estimates by this agency, the total daily production of 15 OPEC members in September reached 32.85 million barrels, which is 90,000 barrels more than in August. The main reason for the increase in OPEC production is attributed to growth in Libya and Saudi Arabia's output.
Iran's Daily Oil Production Decreased by Another 100,000 Barrels in September
Iran's oil production has decreased by another 100,000 barrels per day in September, totaling a decline of 335,000 barrels since the U.S. left the JCPOA. Despite this, the National Iranian Oil Company claims there are no plans to reduce production. This situation highlights the challenges Iran faces in maintaining its oil revenues amid increasing production from other OPEC members.
👥 Key Players
📰 What Happened
Iran's oil production decreased by another 100,000 barrels per day in September, marking a total decline of 335,000 barrels since the U.S. withdrew from the JCPOA. Despite this drop, Iran's oil company claims it will maintain production levels.
- Iran's oil production in September was estimated at 3.45 million barrels per day.
- Iran has 13 million barrels of unsold oil stored in tankers in the Persian Gulf.
💡 Why It Matters
📚 Background
Iran's economy is heavily dependent on oil exports, and U.S. sanctions have severely restricted its ability to sell oil internationally. The JCPOA was intended to lift such sanctions in exchange for Iran limiting its nuclear program.
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