IEA: Iran Can Increase Oil Exports by 1mn bpd
TEHRAN – Iran’s oil exports could rise by 1 million barrels per day within six months if sanctions are lifted from the country, according to a March report from the International Energy Agency (IEA).
However, the IEA believes that it may take months before additional volumes of oil from Iran appear on the market, as negotiations on the Iranian nuclear deal stalled before the “finish line”.
Besides OPEC+ countries, United States, Canada, Brazil and Guyana can also increase supplies to the world market, agency experts stressed.
The eighth round of Vienna talks is still continuing although a pause in the talks was announced by the EU coordinator of the talks foreign policy chief Josep Borrell.
Oil Market Heads for
‘Biggest Supply Crisis in Decades’
The International Energy Agency said Wednesday that three million barrels per day of Russian oil output is at risk beginning in April as sanctions hit and buyers shun the nation’s exports.
“The prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock,” the Paris-based firm said in its monthly oil report, adding that this could ultimately be the “biggest supply crisis in decades.”
“The implications of a potential loss of Russian oil exports to global markets cannot be understated,” the IEA added.
Russia is the third-largest oil producer behind the United States and Saudi Arabia. But Russia is the largest oil and products exporter in the world, and Europe depends on the nation for supplies.
In January 2022, total Russia oil and products production stood at 11.3 million barrels per day, or bpd, of which around 8 million bpd is exported.
Looking forward, the IEA said 2.5 million bpd of exports are at risk. Of that, 1.5 million bpd is crude, with products making up the other 1 million bpd.
“These losses could deepen should bans or public censure accelerate,” the firm added.
There’s also the possibility that peace is struck, curbing additional disruptions in the oil market.