Minister of Economy: Iran's Oil Sales Will Soon Reach 2 Million Barrels

The Iranian Minister of Economic Affairs and Finance states that due to appropriate measures taken and Iran's return to the oil market, it is predicted that Iran's oil sales will soon return to the level of 2 million barrels per day. The Shana news agency, affiliated with the Ministry of Oil, reported on Sunday, February 5, quoting Ali Tayebnia, that the year 1394 (2015) was a very important and sensitive year for Iran's economy, and despite the unprecedented drop in oil prices and a decrease in the country's foreign exchange revenues, good achievements were made in the country's economy. Oil prices fell from about $108 in the first half of 2014 to about $52 last year, and this year it has been around $33. Before the sanctions, Iran exported 2.2 million barrels of oil and 300,000 barrels of gas condensate daily, but during the sanctions, Iran's crude oil exports dropped to about 1 million barrels. Meanwhile, Iran's daily gas condensate exports fluctuated between 190,000 and 300,000 barrels. Nevertheless, reports indicate that Iran has significantly increased its crude oil exports after the sanctions were lifted in January. Reuters statistics indicate that Iran's oil exports will peak at 1.65 million barrels this month, while in February it reached 1.5 million barrels. The Minister of Economic Affairs and Finance described the post-JCPOA conditions as a suitable opportunity for economic opening and achieving 8% growth, stating that with the appropriate measures taken and Iran's return to the oil market, it is expected that Iran's oil sales will soon return to the level of 2 million barrels per day. The Central Bank is also in a very good position regarding international credit and foreign exchange resources. On Sunday, February 5, the first oil shipment from Iran headed to Europe. The Spanish oil company Repsol purchased this one million barrel shipment for its refinery in Gibraltar. Additionally, a 2 million barrel shipment is headed to Total in France, and Lukoil has also received an oil shipment from Iran for refining in Romania. Reuters writes that it is expected that up to 300,000 barrels of Iranian oil will head to Europe daily. India increased its imports of Iranian oil by 21% last month, and South Korea is negotiating to receive more oil and gas condensate from Iran. Tayebnia emphasized that achieving 8% growth is a necessity for Iran's economy and stated that major countries have provided suitable credit lines to Iran, indicating the interest of large economies in developing economic and trade relations with Iran. Tayebnia considered the agreement for the opening of a $10 billion credit line from Japan and a €5 billion credit line from the South Korean government for developing economic and trade relations with Iran as indicative of the significant capacities in Iran's economy, saying, 'We must use the current opportunity to reform the structure of Iran's economy and learn from past mistakes.' The Minister of Economic Affairs and Finance also mentioned the readiness of 'hundreds of Japanese and European companies to enter the Iranian market in the automotive, aviation, and other sectors,' adding that 'we must seize this opportunity and work to attract foreign resources and investments by improving the business environment.' In this context, Iran's efforts to export 1.65 million barrels of oil per day, the Joint Commission of the Parliament agreed to a $40 oil price in the budget bill, and Reuters reported that solving the insurance problem for Iranian oil tankers will take another two to three months.