ALBAWABA – Amid efforts by major exports to bolster prices, Iran aims to boost oil outputs as exports to China hit new highs, news agencies reported Wednesday.
According to Bloomberg, Iran has plans to raise oil production as back-door diplomatic efforts with the United States (US) appear to be easing pressures on the Islamic republic.
Iran aims to boost oil output to 3.4 million barrels a day by the end of summer this year, according to a statement by Oil Minister Javad Owji on Wednesday.
The Middle Eastern nation’s cap is 3.8 million barrels a day, Bloomberg reported.
Iran has already boosted production by about 50 percent over the past two years, according to comments Owji made to the parliamentary energy committee, as reported by the ministry’s news service Shana.
Owji’s remarks come amid diplomatic efforts between the US and Iran that have raised speculation about whether aspects of the nuclear deal could be revived. The deal was abandoned by former US President Donald Trump in 2018.
The two nations recently reached agreements that would see captive Americans released and some frozen state funds freed for transfer.
Further talks could set the stage for Iran to boost its already surging oil exports, according to AlArabiya.
Iran aims to boost oil output amid OPEC+ efforts to bolster prices
The nation shipped 2.2 million barrels a day of crude and condensates during the first 20 days of August, with monthly exports poised to reach the highest this year, according to TankerTrackers.com Inc.
Meanwhile, China oil imports from Iran are also expected to hit multi-year highs this month.
Iran’s booming oil sales have and will further complicate efforts by major players within the Organization of Petroleum Exporting Countries and its allies (OPEC+) to bolster oil prices. Especially in light of further output boosts by the Iranians.
So far, Russia and Saudi Arabia have cut out output and supply by more than 2 million barrels a day to push oil prices above $85 a barrel for global benchmark Brent crude oil.
The revival in Iran’s output has coincided with the nation reaching a preliminary accord with regional adversary Saudi Arabia in April, as well as the latest US diplomatic talks.
