Iran raises its oil production to its highest level in two years despite US sanctions.

Published:

April 15, 2021 03:01 GMT

Tehran produced 2.3 million barrels of crude oil per day in March, according to estimates by the International Energy Agency.

The monthly report of the International Energy Agency (IEA) reveals that Iran, despite US sanctions, last month increased its oil production to the maximum reached since 2019.

According to the agency, Tehran increased its production by 110,000 barrels per day, and it produced 2.3 million barrels of crude per day in March, the highest level in nearly two years.

The Islamic Republic could add another 1.5 million barrels to this figure if Washington and Tehran reach an agreement that lifts the restrictions imposed by the White House, estimates the International Energy Agency and collects Bloomberg.

Global demand forecast

Overall, the agency strengthened the bullish outlook for global oil demand this year as the global economy recovers from the pandemic. The IEA explains: “The huge surplus in global oil stocks that accumulated during the impact of the Coronavirus, compared to last year’s demand, is being fixed. Vaccination campaigns are accelerating and the global economy appears to be in better shape.”

The agency increased its estimate for growth in oil consumption this year by 230,000 barrels per day to reach 5.7 million per day. On the one hand, these accounts come amid stronger outlook for US-China relations, putting the world on the right track to regain about two-thirds of the demand it lost last year.

The report said that although oil prices “may come under more pressure in the coming months” due to OPEC and its allies’ plans to revive part of the production they stopped during the crisis, any weakness may be fleeting.

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