According to the news agency IRNA, Iranian oil production has seen a significant increase of nearly 1 million barrels per day (bpd) since August 2021, reaching its highest level in nearly five years at 3.1 million bpd. This is the highest level recorded since President Ebrahim Raisi assumed office in August 2021. The surge in oil output has resulted in almost an 80% growth in the Islamic Republic’s oil revenues, which has helped to offset a major deficit in the fiscal budget.
Hossein Hosseinzadeh, a member of the Iranian parliament’s energy committee, attributes the increase in oil output and exports to the current administration’s policy of expanding diplomatic relations with regional countries and those in Latin America. This approach has fostered stronger trade ties and facilitated higher oil exports.
Data provided by Argus reveals that the last time Tehran produced comparable volumes of oil was in October 2018 when the United States withdrew from the nuclear agreement with Iran and reimposed strict economic sanctions. The recent surge in production has been supported by increased exports to China, Venezuela, and Syria. In the second quarter of this year alone, Iran’s crude and condensate exports averaged 1.35 million bpd, showing an increase of 300,000 bpd compared to the previous quarter and 350,000 bpd compared to the average in 2022, as reported by Vortexa.
The second-quarter crude exports represent the highest quarterly shipments Iran has achieved since the US sanctions were enforced at the end of 2018. Furthermore, Iran has set its sights on further expanding its oil production to 5.7 million barrels per day in the coming years.
This development in Iranian oil production and exports holds significant implications for the country’s economy, particularly its fiscal budget. The increase in revenues from the oil sector has allowed the government to address the major deficit it has been facing, providing a much-needed boost to the economy.
As Iran continues to strengthen its trade relations with various countries, especially in the energy sector, the potential for further economic growth and stability becomes increasingly promising. This growth in oil production and exports marks a notable achievement for the Iranian government and highlights the potential of their outreach strategy with regional and Latin American countries.
For more news on the economy and finance, visit RT’s business section.