Iran Oil Production Sets Record High despite Sanctions

A report released by Organization of the Petroleum Exporting Countries (OPEC) indicates that Iran’s oil production in January experienced 21,000 barrels per day increase, reaching the highest production level comparing last three years.
Despite continued economic sanctions on the Islamic Republic, its crude oil production reached more than 2.5 million bpd in the first month of the new year, OPEC announced in its latest report on oil production by member states.
Given 64,000 bpd hike, OPEC member states’ crude production approached to 28 million bpd.
According to the secondary sources, 13 member states produced 27.981 million bpd in January, showing 64,000 bpd increase in comparison to 27.918 million bpd produced in December.
Iran produced 2.503 million bpd crude oil, which was 21,000 bpd more than the production level in December. The latest amount of Iran’s crude oil production has been unprecedented following the United states’ unilateral withdrawal from the 2015 nuclear deal also known as the Joint Comprehensive Plan of Action (JCPOA) in May 2018 and re-imposition of anti-Iran embargo.
Moreover, Iran’s heavy crude oil prices witnessed almost 11 dollars hike in each barrel in January 2022. The price of Iranian heavy crude oil stood at more than 54 dollars in 2021, while it was over 40 dollars in 2020.
OPEC secretariat declared that demand for crude oil in 2022 will stand at 100.080 million bpd, indicating more than four percent increase comparing to the previous estimation.
Iran has also increased oil export along with crude production.
Reuters has published a report recently, quoting, Inc. as saying that Iran’s daily oil export has hiked to more than 1 million bpd in December 2021.
According to the report, despite the fact that China is the main importer of Iran’s crude oil, the Biden administration has not punished Chinese companies over violation of US-imposed sanctions.

About Parvin Faghfouri Azar

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