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Page added on April 6, 2016
Iran Says Oil Output Will Hit Presanctions Level In A Year
Iranian Oil Minister Bijan Namdar Zanganeh said on state television on April 6 that the country’s crude output within a year will reach the presanctions peak of 4 million barrels a day.
Iran’s oil exports by March 2017 will reach 2.25 million barrels a day, thanks to the lifting of economic sanctions in January under Tehran’s nuclear deal with world powers, he said.
Exports already surpassed 2 million barrels this month, he said.
Sanctions imposed on Iran in early 2012 by the United States and European Union over its nuclear program had cut crude exports from a peak of 2.5 million barrels before 2011 to just over 1 million barrels.
Zanganeh comments come as Russia and the OPEC oil cartel have been pushing for an across-the-board output freeze by major world oil producers to try to stabilize collapsing oil prices. Iran has refused the join that freeze.
21 Comments on "Iran Says Oil Output Will Hit Presanctions Level In A Year"
makati1 on Wed, 6th Apr 2016 7:48 am
There will be no ‘freeze’. All will pump full out to pay the bills. We are on the way down and nothing is going to change it. The 3rd world is spreading to all points on the compass. Adjust now and avoid the rush. LOL
PracticalMaina on Wed, 6th Apr 2016 9:57 am
http://nation.com.pk/international/06-Apr-2016/10-ct-of-world-military-spending-could-eliminate-poverty-think-tank
Yeah but that 10% is spent so well…. It goes towards turning reefs into military outpost, and the 300 something thousand barrels a day the US military burns, we will defeat the Ruskies by melting Siberia!
PracticalMaina on Wed, 6th Apr 2016 10:12 am
2 of our military allies working hard on peace.
http://nation.com.pk/international/06-Apr-2016/pakistan-saudi-iran-combine-to-take-global-executions-to-25-year-high
Get out the checkbook, they need money for swords and gallows.
joe on Wed, 6th Apr 2016 10:21 am
They execute people for ‘sorcery’, I kid you not, they are afraid of fortune tellers, yet when they hump kids and sell slaves, its ok.
What a world!
joe on Wed, 6th Apr 2016 10:26 am
Weird to see the US right after Saudi, but ahead of Iraq!
PracticalMaina on Wed, 6th Apr 2016 10:36 am
yeah 28 for the US, plus how many hundreds of cases where an officer was judge juror and executioner and killed someone they deem a threat.
Plantagenet on Wed, 6th Apr 2016 11:04 am
More oil production = longer oil glut.
Thanks Iran!
Steve on Wed, 6th Apr 2016 12:03 pm
Iran’s exports have barely increased. All their floating storage is still anchored offshore, they are not cooperating with Obama.
The Oil Glut is OVER and it looks more & more like it was artificial every day…
Plantagenet on Wed, 6th Apr 2016 1:38 pm
Hi Steve
1. It was always naive to imagine that Iran would cooperate with Obama. Iran has its own agenda.
2. Iran is on track to increase their oil exports by 1.5 million bbls/day by the end of next year–or so they say.
3. The oil glut is not over. There is still a significant imbalance between oil production and consumption. As long as production exceeds consumption the oil glut will continue and oil prices will stay low.
CHEERS!
Steve on Wed, 6th Apr 2016 3:27 pm
i’m not sold on the idea that production is higher than consumption.
Nor am I sold on Iran increasing their exports by 1.5 Million Bbl/day. They do not have a good track record of ever following through with their claims and they are prone to making wild statements bent on short term (immediate) market manipulation.
twocats on Wed, 6th Apr 2016 3:39 pm
Steve, you and geopressure are the only two people I’ve really seen on the thread that are in the camp that says oil production is all but completely smoke and mirrors. geo believes the tanks are running dry so quickly that they will see oil above $75 (i think it was) by August of this year. So in essence prices are being kept artificially high (which of course people like Plant jump on to paint any PO analysis as filled with crazy conspiracy theorists).
I mean if this is true, how long can such a situation last? Are we talking 4 months? 6 months? I suppose inventories would have to be being manipulated, so only when the gas stations actually run dry will the gig be up.
twocats on Wed, 6th Apr 2016 3:42 pm
sorry *artificially LOW.
for my end, I thought if we made it to april and still had really low oil prices that Peak Oil would be locked in. But production has fallen so little that if prices reversed tomorrow a new peak could most likely be reached between Iran and Shale. I still think low oil prices going forward increase the probability of locking in peak oil, but I’m thinking this probability is increasing only slightly as time goes on.
twocats on Wed, 6th Apr 2016 3:51 pm
It will be interesting to see the March number for production and if they are beginning to accelerate or just slowly drift lower, and what that does for timelines for demand running up against supply. It’s happy motoring in the US, so at some point consumption will meet production.
I also haven’t seen any summaries yet of March bankruptcies for the energy complex.
Truth Has A Liberal Bias on Wed, 6th Apr 2016 4:00 pm
This ‘production freeze’ is obviously a feeble attempt to hobble Irans comeback. All KSA really needs is a few big players like Russia and Iraq to get on board with the production freeze plan but their refusal to freeze production unless Iran does makes the target of this strategy very clear. KSA is being run by some clowns who lack any strategic thinking capability. As well KSA has been losing market share despite their low price to regain market share strategy. It won’t be long until KSA suffers a palace coup and civil war. Recent attacks in KSA by ISIS demonstrate a clear intent to replicate a strategy we have already seen in Iraq, where denominational targets are assaulted in an attempt to ignite a sectarian conflict that can consume the region.
Truth Has A Liberal Bias on Wed, 6th Apr 2016 4:04 pm
OPECs March production numbers will be out April 13.
My guess is OPEC will be down and KSA will be flat. KSA domestic consumption will be increasing soon as air conditioning season takes about a million a day of exports.
Truth Has A Liberal Bias on Wed, 6th Apr 2016 4:04 pm
http://www.opec.org/opec_web/en/publications/338.htm
Plantagenet on Wed, 6th Apr 2016 5:05 pm
@twocats
Just because we are in an oil glut now doesn’t mean that peak oil isn’t a concern down the road.
Cheers!
Steve on Wed, 6th Apr 2016 5:36 pm
Two cats; Steve is Geopreasure, from his phone… My antivirus software does not like me visiting Peak Oil on my laptop…
Truth has a liberal bias; The Production. Freeze is obviously NOT a means to cap Iran’s production… These countries are not stupid… The U.S. Has been trying to pressure OPEC into announcing a production CUT for the last few months (ever since the ‘freeze-talks’ began… The US wants to be able to blame the upcoming oil shortage on OPEC…
OPEC is not stupid though. They announced a freeze instead as a means of reminding the world that they are producing @ maximum capacity… So when gasoline becomes scarce (like it has been in 2/3rds of the world over the last 12 months), it will not be OPEC’s fault…
That is why OPEC keeps bringing up this “freeze”…
Steve on Wed, 6th Apr 2016 5:38 pm
Plantagenet; how much do they pay you every time you post the words “oil glut”???
Boat on Wed, 6th Apr 2016 7:30 pm
mak,
There will be no ‘freeze’. All will pump full out to pay the bills.
Once again you spew information. All over the world companies and countries alike have cut or quit drilling. Some have not.
GregT on Wed, 6th Apr 2016 8:10 pm
Boat,
Once again you spew non-sense. At the very least, try reading what you write before posting.