Iran is reported to have increased its oil production all he way up to 3,5 million barrels a day. This is reported by Mehr with reference to Mr. Javadi, Iranian Deputy Minister of Oil as well as Managing Director National Iranian Oil Company (NIOC). At the same time, the Deputy Minister doesn’t deny the possibility of raising the oil production even more given the recently signed agreements. At the same time, he reports that Iran is going to increase its oil exports all the way up to 2 million barrel a day in a matter of days.
At the same time, Masterforex-V Academy exports say that 30-35% of Iranian oil is exported to Europe. Given the fact that the West canceled the sanction against Iran, the latter is going to keep on raising the production and export.
By the way, all of that was said by the Deputy Minister right before the oil summit in Qatar that took place over the weekend and gather a lot of major oil producers and exporters making up for 60% of the total global production of crude oil. For those of you who don’t know, they were going to agree on the idea to cap the oil production at the level seen in early 2016 in order to avoid further oversupply in the global market and therefore stop the prices from going down.
As for Iran, the country was allowed to resume the export of crude oil to Europe and other outlets right after the USA and its Western allies canceled the sanctions imposed on Iran a couple of years ago over its nuclear program. It happened in January. Since then, Iran has been increasing its oil production and export at an unprecedented pace. At the same time, Iran is reported to be actively working on introducing new production technologies to make the oil production process less costly and more efficient. With that being said, if Iran manages to do so, this is going to let the country see more profits from oil exports amid lowers production costs even if the prices are still low. Another thing to pay attention to is that Iran is planning to start developing some other oil fields, including South Pars shared with Qatar in the Persian Gulf.
