/ world today news/ Iran has ordered an increase in oil production by 500,000 barrels per day. The step is logical after the lifting of international trade sanctions on the country.
“With the lifting of sanctions, Iran is ready to increase production by 500,000 barrels per day, and today this order was made,” said Roknedin Javadi, head of the National Iranian Oil Company and deputy oil minister.
Iran currently produces 2.8 million barrels per day, exporting just over 1 million.
Plans for the current increase were announced after the country agreed to curtail its nuclear program in order to lift an international embargo on its exports. Another 500,000 barrels is due in another six months.
On Saturday, the US and the EU fulfilled their part of the Iran deal and lifted sanctions. Crude oil prices fell further late last week as markets braced for Iran’s comeback. The American stock exchange in New York registered the lowest prices per barrel since 2003. this way.
“The biggest problem is that there is currently a surplus of 2 million barrels per day in the oil market, which is driving prices lower and lower,” Javadi said. According to him, this does not change Iran’s need to increase production.
“If Iran does not increase oil production, neighboring countries in the next 6 to 12 months will do the same and take our market share,” he added.
Currently, the price of a barrel of oil on international markets is below 28 dollars.
Tehran / Iran
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