Sanctions Not Impacting Iranian Oil: Report
An updated industry report published on Wednesday appeared to show tightening international sanctions were having no impact on Iranian crude exports.
The latest publication of data by the Joint Organizations Data Initiative (JODI) listed Iran as having produced 3.752 million barrels per day (bpd) in February, marking the highest output since December 2008.
The 32,000 bpd increase over January mostly went into exports, which climbed 3.2 percent.
JODI, an initiative coordinated by the International Energy Forum (IEF), depends on participating member states for data collection.
The IEA said in its report on April 12 that sanctions on Iran could see “output could plummet to 2.6-2.8 mb/d by mid-summer, unless alternative buyers can be found”. Total production in Iran was placed at 3.35 million bpd in February, further decreasing to 3.3 million bpd in March.
Norway was among the most prominent gainers in the JODI report, adding 282,000 bpd, an increase of 19.5 percent. Other additions were recorded for Canada, were production increased to 2.375 million bpd.
Saudi Arabia, the world’s largest exporter, reported a minor decrease for JODI of 18,000 bpd in February versus a month earlier to reach 9.853 million bpd, falling short of the 10 million bpd IEA assessment. After a jump last month, exports eased by 22,000 bpd.
Russia’s productionlevel remained under 10 million bpd for the second month running, although it still edged Saudi Arabia by 90,000 bpd to remain the world’s largest oil producer. No details were available as to how exports fared in February, but added data for January indicated that most of the drawback hit exports.
Production in Iraq was also lower, coming in 107,000 bpd less to reach 2.54 million bpd. Libya and the United Arab Emirates, notable players in the world oil markets, once again did not provide any information in time for publication.
The IEA maintained that higher output from Iraq, Libya and the UAE “more than offset reduced Iranian and Angolan supplies” in March.
Inconsistencies and delays in data submissions from member states have been contentious issue within the IEF. More transparency, the IEF argues, would help reduce price volatility seen as detrimental to long-term industry investment.