Iran supply problems add to fears of oil hitting $200 a barrel

The Iranian petroleum industry needs foreign investment and, despite the country’s vast oil and gas reserves, is struggling to maintain production levels, according to industry experts.

Although Iran is Opec’s second-largest exporter, production at the country’s leading oil and gasfields is believed to be falling by as much as10 per cent annually because of a lack of investment and expertise.

David Kirsch, an oil analyst at PFC Energy in Washington, said: