Iran has raised OPEC production ceiling

April 12, 2016 11:39 am

File photo of a tanker at an oil terminal in southern

A new report by Platts, an independent provider of data, shows Iran’s post-sanctions crude production has pushed up the output level of the Organization of the Petroleum Exporting Countries (OPEC).
The OPEC production rose by 40,000 barrels per day (bpd) in March from a month earlier, to 32.38 million barrels a day, according to the Platts survey released late Monday.
The research said Iran’s output climbed by 110,000 barrels a day to 3.23 million barrels a day in the same period.
According to Platts analysts, Iranian production has gone up 340,000 bpd since December, as it seeks to regain its former share of the global oil market.
The report noted however that the rise has been less dramatic than Iranian officials had predicted, but it is still a “notable increase” as former buyers return to the market.
The latest data indicate that demands for Iranian oil have soared, particularly from India and South Korea.
In Europe, the Iranian crude has reportedly found its way into France and Spain since anti-Iran sanctions were lifted on January 16 as part of Tehran’s last summer nuclear agreement with the permanent UN Security Council members plus Germany (P5+1).
Platts added that even more Iranian crude is expected in Europe this month, encouraged by growing insurance coverage for shipments of the country’s oil.
It said this has been partly eased by European banks’ gradual return to financing Iranian crude transactions.
Iran has maintained that it is targeting production of four million bpd in the new Iranian year (started March 20).
Tehran has said that it will consider a proposed freeze on OPEC output once Iran regains its market share and rightful place in the global oil trade.
Oil prices have over the past several months seen a downward trend due to a global glut that some blame on a slowing world economy.
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