As cited by Reuters, Iran’s Tasnim news agency reported that Iran plans to increase its crude oil output to 4 million barrels daily. No specific sources for the plan were provided.
“An economic council headed by Iran’s interim president Mohammad Mokhber has approved a plan to raise the country’s oil output from 3.6 million barrels per day to 4 million barrels per day.” The report read.
Despite U.S. sanctions that have significantly reduced the market for Iranian oil, Iran has been eager to increase its oil production. The country reported an increase in exports of crude recently, with the average daily for the first quarter hitting the highest in six years at 1.56 million bpd according to Vortexa data. Last year, the country exported 1.29 million bpd on average, which was 50% more than a year earlier.
“The Iranians have mastered the art of sanctions circumvention,” Fernando Ferreira, head of geopolitical risk service at Rapidan Energy Group, told the FT at the time. “If the Biden administration is really going to have an impact, it has to shift the focus to China.”
The news of production growth plans follows an earlier report that Tehran had inked oil project development plans worth a total $13 billion. Those were expected to add 350,000 barrels to Iran’s daily production.
Iran is a major producer within the Organization of the Petroleum Exporting Countries (OPEC).
