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Iran’s parliament has lowered the government’s oil export target from 2.3 million to 1.5 million to manage expectations, news agency ISNA reported Jan 2.
The proposed budget had aimed to sell over 2 million b/d of crude both in domestic and international markets. However, the figure was questioned due to strict US sanctions and the COVID-19 impact on demand. Both factors have capped Iran’s sales below 1 million b/d over the past year.
Parliament’s Corporate Committee — which is in charge of finalizing the proposed budget — said the target was unrealistic.
“The 2.3 million-barrel sales ceiling was unrealistic and non-realizable… In the most optimistic case, members of the commission reached the conclusion that the government [can] achieve exports of 1.5 million barrels…,” Malek Shariati-Niasar, the head of the energy team in the Corporate Committee, was quoted saying.
“The commission concluded that the government can practically count on the money of only 1 million barrels of oil. But the Commission has given the government authority to sell up to 1.5 million b/d,” Shariati-Niasar said.
The price base for the government calculations was unchanged at $40/b, he added.
