Iran boosts oil production amid US sanctions

A former Iranian Oil Company official stressed Tehran's dependence on China's oil market citing global reluctance due to US sanction to import energy from Iran.

Mohsen Qamsari, during an exclusive interview with the Iranian Labour News Agency (ILNA), shed light on Iran's plans to bolster its oil production and exports in light of the declining trajectory of Saudi Arabia's oil exports.

He underscored the aspiration to achieve a daily production level of 3.4 million barrels, although he lamented the limited export opportunities beyond the Chinese market. Qamsari stated that Saudi Arabia's export reduction is insufficient to create a substantive opening for Iran's oil exports. He also argued that Saudi shipments fluctuate seasonally.

In the context of Iran's oil market dynamics, Qamsari illuminated Russia's perception of Iran as a competitor, exemplified by its decade-long actions aimed at diminishing Iran's presence in the oil markets. This competitive environment also endures regarding China. The proximity of Russia to China, fortified by a pipeline facilitating Russian oil exports to China, further exacerbates the challenge for Iran in the Chinese market.

Iran's oil minister recently announced a projection of reaching a daily crude oil output of 3.4 million barrels by the end of September, despite ongoing US sanctions.

TankerTrackers.com has reported that in the initial 20 days of August, Iran dispatched an average of over two million barrels of oil daily, marking a more than 30-percent surge compared to the past few months.

The renewed growth in production and exports coincides with an agreement permitting the release of $6 billion of Iranian funds frozen in South Korean banks, potentially indicative of broader diplomatic dealings beyond the public eye.