Iran to Boost Oil Export to 2.25 Million Barrels a Day

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Iran vows to reclaim its share in the global oil market

Iran to Boost Oil Export to 2.25 Million Barrels a Day

© EPA/ABEDIN TAHERKENAREH

Managing director of the National Iranian Oil Company Roknoddin Javadi told to the reporters earlier today that Iran was ready to increase its crude output of oil by 500,000 barrels per day. Iran’s draft budget for 2016 offers daily export of 2.25 million barrels a day.

The development came two days after lifting the US sanctions on Iran and a joint press conference between Iran and European Union in Vienna on January 16 regarding the implementation of a nuclear deal reached by Iran and six world powers in the Austrian capital, Vienna, last July.

Mr. Javadi told the reporters that the most important problem currently facing the global oil market was a surplus supply of two million barrels per day, which had led to drastic reduction in global oil prices.

He also said that, “Of course, political issues and decisions made by big countries and some major members of the Organization of the Petroleum Exporting Countries (OPEC) and non-member producers were also influential in reducing oil prices.” He added, “If Iran does not increase its oil output, neighboring countries may raise their crude production within the next six months to one year, thus taking Iran’s share of the market”.

Javadi’s remarks echoed earlier remarks by Iranian Oil Minister Bijan Zanganeh, who told reporters last November that the country would not leave its share in the global oil market to any other country once sanctions against Iran was lifted.

Oil prices in global markets have fallen to a new 12-year low last Friday. Saudi Arabia is being widely blamed for the low oil prices since Riyadh has refused to cut its crude output in a bid to drive other oil market players out of the market. During its meeting last month, OPEC led by Saudi Arabia claimed that the decision was made to face the competition from North American shale oil output.

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