Iran is in talks for a speedy recovery in it oil output, a senior ministry official said this Wednesday quoted by Reuters. The hopes for a recovery advance as talks with Teran and six world powers progress to lift the U.S. sanctions that have been plunging Iran’s oil capacity since 2018.
Firstly, since April, Iran and six major world powers have been in talks to revive the 2015 nuclear deal; the deal that Donald Trump lifted three years ago, reimposing sanctions that have hit Iran’s economy hard by sharply cutting its vital oil exports.
Secondly, as those talks go forward, Iran would be in a perfect spot for sharply increasing its oil output. Quoted by Reuters, Farokh Alikhani, production manager of the National Iranian Oil Company, said. “If sanctions are lifted, most of the country’s crude production will be restored within a month.”
Thirdly, he also remarked. “Careful planning has been done to restore oil output to pre-sanctions levels in intervals of one week, one month and three months.”
However, Reuters reports that Washington said that, even if the nuclear deal comes back to life, there would be hundreds of other U.S. sanctions imposed on Iran that would maintain its current levels of oil production.
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Iran hopes for oil restoration soon
In addition, that would mean that the additional Iranian oil supply would not be re-introduced into the crude market soon.
Furthermore, Iran became economically relevant in the geopolitics landscape in 2016; back from years of economic isolation, due to the crippling sanctions that world powers imposed on the Islamic Republic; in return for Tehran complying with the 2015 deal to curb its nuclear ambitions.
Consequently, Tehran’s oil exports increased to 2 million barrels per day (bpd) in 2016 and reached a peak of 2.8 million bpd before sanctions were re-imposed in 2018 by Trump.
On the other hand, Iran does not release figures for current exports, however, Reuters and some energy monitoring firms estimate them at around 700,000 bpd in April; and 600,000 in May.
Finally, Alikhani said Iran hopes to raise its output “to more than 4 million bpd. The average daily oil production of Iran after the implementation of the 2015 deal was 3.38 million bpd; and we also plan to return to that level if the sanctions are lifted.” He said.