Iran’s steep oil output growth has stalled in the last 90 days, new data shows, suggesting Tehran might be having problems fulfilling its plans to raise production to a pre-sanctions level.
Iran’s oil output jumped to 3.64 million barrels per day (MMBPD) in June from an average 2.84 MMBPD in 2015 following the easing of Western sanctions in January.
But since June, output has flat-lined and reached just 3.63 MMBPD in August, according to OPEC data based on secondary sources, which include consultants and industry media, Reutersreported.
Iran in April balked at an initiative by OPEC and Russia to freeze output globally. Tehran said it needed to first regain market share lost while it was under sanctions.
OPEC’s play caller, Saudi Arabia, insisted all nations should join and the freeze deal collapsed.
With producers trying to revive the freeze effort, Iran has signaled it was more willing to cooperate when OPEC and non-OPEC producers informally meet in Algiers on Sept. 26-28,Kallanish Energy reports.
Iran has repeatedly said it needs to reach a level of output of at least 4 MMBPD before it agrees to any deal.
But some experts have said that level isn’t possible without massive repairs/improvements to Iran’s crude oil infrastructure.