Iran’s crude oil production
Iran is OPEC’s (Organization of the Petroleum Exporting Countries) third-largest crude oil producer. On March 14, 2016, OPEC released its Monthly Oil Market Report. The report showed that Iran’s crude oil production rose by 187,000 bpd (barrels per day) to 3.1 MMbpd (million barrels per day) in February 2016—compared to January 2016. This is the biggest monthly gain since 1997. To learn more about OPEC’s crude oil production, read the previous part of the series.
Iran’s crude oil production estimates
Iran increased its crude oil production in February 2016 due to the sanctions on the oil industry. This was Iran’s highest production level since July 2012. Iran is pumping to regain the market share that it lost to Saudi Arabia and Iraq due to oil sanctions. Lower oil prices are also motivating oil producers to produce more to offset lower oil prices. Read How Are Oil Prices Squeezing OPEC Members’ Budgets? to learn more. Iran wants to increase the crude oil production to 4 MMbpd in 2016. In the next part of this series, we’ll discuss whether Iran will help support oil prices.
Impact on global oil market
The rise in the crude oil production from Iran could limit the upside for crude prices. Multiyear low oil prices impact Middle East oil producers like Saudi Aramco, National Iranian Oil Company, and Kuwait Petroleum Company. It also impacts domestic oil and gas producers’ margins like Oasis Petroleum (OAS), Northern Oil & Gas (NOG), Triangle Petroleum (TPLM), Synergy Resources (SYRG), WPX Energy (WPX), and Range Resources (RRC).