News / Energy

Iran to raise oil output to new highs soon

Thursday, 28 July 2016 4:36 PM [ Last Update: Thursday, 28 July 2016 4:36 PM ]

An aerial view of the platform of Iran’s Soroush oil field in the Persian Gulf. (Shana)

Bloomberg says the current market data show Iran is set to reach its objective to increase oil output to as much as 4 million barrels per day (bpd) within the next few months.

The world’s leading business news agency says the increase will take the country’s output to the highest level in the past eight years.

It has hailed Iran’s success to raise its oil production within only six months after the removal of sanctions in January, adding that key Asian consumers had readily absorbed extra production from the Islamic Republic.

“At the biggest oil market in the world, crude from Iran is back in vogue,” wrote Bloomberg. “The Persian Gulf state boosted exports to major oil consumers in Asia during the first half of this year, after international sanctions that restricted its supplies were eased in January.”

Bloomberg says Iran has been able to drastically increase its oil production within only six months after the removal of the sanctions.

It further said government and shipping data showed that Japan’s purchases increased 28 percent, India bought 63 percent more, South Korea’s imports more than doubled while shipments into China gained 2.5 percent during the six months after the removal of sanctions against Iran.

“The increase in cargoes to Asia shows Iran is having some success in meeting its pledge to prioritize regaining market share it lost in the region due to the sanctions over its nuclear program,” wrote Bloomberg.

“The nation, which was OPEC’s second-biggest producer before the international measure choked off its supplies, defied skeptics with a 25 percent surge in production so far in 2016 and aims to reach an eight-year high for daily output of 4 million barrels by the end of the year.”

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