Iran has returned to the pre-sanctions level of oil production

Oil production in Iran has reached the pre-sanctions level in April, follows from the monthly market survey by the World energy Agency, excerpts of which leads Bloomberg. A week earlier, on may 5, Deputy Minister of oil and Director of National oil company of Iran (NIOC) Rokneddin Javadi called restoring the country’s pre-sanctions level of exports as a key to ensure that Tehran has started to discuss measures to stabilize the market of oil from other OPEC members that he, until recently, refused to do. Thus, the achievement of country targets may take one to two months, said the official. According to Javadi, in the period from 20 April to 5 may daily average oil exports of the Islamic Republic amounted to 2.1 million barrels./day while total production — 3.7 million barrels./day.

According to the IEA, oil production in April amounted to 3.56 million barrels./day. — an indicator that the previous time the country recorded in November 2011 — two months before to the country the European Union imposed an oil embargo. Oil exports for the month were close to the pre-sanctions level, an increase of more than 40%, or 600 thousand Barr., up to 2 million barrels./day follows from the document.

The largest buyer of Iranian oil in April was China, the index rose in monthly terms by 57%, or 800 thousand Barr./day. Deliveries to Europe increased by more than half, to 500 thousand Barr./day. — major customers of the product include France’s Total SA and the Turkish Tüpraş-Türkiye Petrol Rafinerileri AS. Before the tightening of sanctions against the country in mid-2012, European consumers have purchased Iranian oil in the amount of 600 thousand Barr./day.

The increase in exports was partly due to shipments that do not have time to implement in March, says the IEA. Information about how long a product has been shipped with major Iranian export terminal at Kharg island, do not exist.

Iran can continue to increase production, but limitations related to extractive capacity might constrain the potential of its significant increase, warns the Agency. Prior to the introduction against the country of restrictive measures Iran took the second place in oil production in OPEC, after which in August 2012 gave way to his Iraq.

Oil production in April increased and other OPEC members — Iraq and the UAE, but Iran’s contribution to its increase was the most significant (on 300 thousand Barr./day. more than in March). Against this background, aggregate production in OPEC approached an eight-year high — 32,76 million barrels./day. Iran’s refusal to discuss the possibility of freezing the production, before the oil exports of the country will return to pre-sanctions level, provoked the failure of the April 17 agreement in Doha, when the Saudis at the last moment was interrupted by the consultation, because of disagreements with the Iranian colleagues.

Iran returns to the market faster than previously predicted, said to Bloomberg last week, Neil Atkinson, head of oil markets, the IEA. The increase in oil supply by Iran is offset by the production decline in Venezuela and Nigeria, noted the expert.

The price of Brent crude oil increased by 69% since the January lows by a decline in US production, interruptions in the supply of the product number of the largest exporters of oil and increasing demand. 17:00 GMT the benchmark was trading at $47,58 per barrel.

However, while oil reserves remain high, especially in the United States, which ranks first in the world for its consumption, it will affect prices, warns energy companies, including the second largest oil company in the world Royal Dutch Shell.

Iran now has no reserves of oil in floating storage, said Javadi. In the context of the embargo, Tehran was filled with its tankers. Top Manager did not disclose how much oil condensate is stored in floating storages of the country.