Iran’s crude oil production

Iran is the third-largest crude oil producer among OPEC members. The EIA estimates that Iran’s crude oil production was flat at 3.8 MMbpd (million barrels per day) in August 2017—compared to July 2017. Production rose by 180,000 bpd (barrels per day) or 4.9% year-over-year.

Iran’s crude oil production is at an eight-year high. The production rose after the US lifted sanctions on Iran in January 2016. High crude oil production from Iran is bearish for crude oil (DWT) (BNO) (UWT) prices. Lower crude oil prices have a negative impact on oil and gas producers’ earnings like Northern Oil & Gas (NOG), Noble Energy (NBL), Chesapeake Energy (CHK), and QEP Resources (QEP).

Iran’s Crude Oil Production Was Flat in August 2017

Iran’s crude oil exports

According to market intelligence company Kpler, Iran’s crude oil exports rose by 180,000 bpd to 2.135 MMbpd in August 2017—compared to July 2017. Iran’s crude oil exports rose 9.3% month-over-month. Iran’s crude oil exports rose despite the production cut deal. Any rise in Iran’s crude oil exports is bearish for crude oil (FENY) (FXN) (IYE) prices.

Iran’s crude oil production plans 

Iran’s crude oil production averaged 3.5 MMbpd and 2.8 MMbpd in 2016 and 2015, respectively. Iran was allowed a small production increase in the production cut deal.

Iran plans to increase its crude oil production to 4 MMbpd by December 2017. The National Iranian Oil Company, a state-run monopoly company, plans to increase its production to 4.5 MMbpd by 2022.

Any rise in production from Iran would pressure crude oil (SCO) (BNO) (XLE) prices. Lower crude oil prices have a negative impact on oil and gas producers’ earnings like Northern Oil & Gas (NOG) and QEP Resources (QEP).

In the next part, we’ll discuss some crude oil price forecasts.

Latest articles

Apple Arcade (AAPL) is a subscription gaming service that was unveiled at Apple’s annual event last week. The service will launch on September 19.

Cannabis legalization is gaining traction not only in the US but also globally. The third presidential Democratic debate was held on September 12.

Google has agreed to make a one-time settlement of over $945 million euros to the French ministry. The ministry accused Google of evading taxes.

In Q4 2018, legendary investor George Soros sold all his holding in Apple (AAPL). In Q3 2018, Apple represented around 0.2% of his total portfolio.

Jim Chanos, the founder and president of Kynikos Associates, is a long-time short-seller of Tesla stock. Tesla stock has fallen 17.5% in the last year.

Despite Aurora Cannabis's subdued results, Cowen initiated coverage on five cannabis stocks: CRLBF, GTBIF, CURLF, MMNFF, and ACRGF.