Iran Sees Falling Oil Exports Amid Greater Russian Competition in Asia
Oil exports from Iran have dipped in recent months given greater competition from Russia in the Asian market, Bloomberg reported. Dropping from a peak of 1 million barrels of crude oil exports a day to an average of 750,000 barrels, Iran's exports are dealing with direct competition from Russia in countries such as China. The competition has forced Tehran to constantly review and adjust its prices, Bloomberg said.
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The U.S. has levied heavy sanctions on Iran and its oil sector, forcing Iran to offer discounts and disguise the oil as coming from other countries. The sanctions combined with the greater competition has further forced the price of Tehran's oil down. Russia's greater interest in the Asian market comes after many buyers have spurned its oil exports following its invasion of Ukraine.
Iran supplies local refineries with 2.1 million barrels of crude oil a day, moving the country's total production to nearly 2.8 million barrels a day, Bloomberg said. Tehran stands ready to boost exports if the 2015 nuclear deal is revived, the people close to the matter said. Negotiations over the "Iran Deal" have recently stalled, with most analysts doubting it will be restored before the U.S.'s midterm congressional elections, Bloomberg said. Iranian Oil Minister Javad Owji said that Iran has a production capacity of 4 million barrels a day, and that he would like to lift it to 5.7 million.