Iran to boost oil output to 4M barrels per day amid economic challenges
Date
5/27/2024 4:27:58 AM
(MENAFN) The Iranian Tasnim News Agency reported on Sunday that Iran has greenlit a plan to boost its oil production to four million barrels per day, though no specific timetable was disclosed. According to Tasnim, an economic council led by interim Iranian President Mohammad Mokhber approved the proposal to elevate the country's oil output from the current 3.6 million barrels per day to the targeted four million barrels per day. The plan is poised to be executed by the National Oil Company, with an allocated funding of USD3 billion, as reported by IRNA.
This decision comes amidst a challenging period for Iran, as the nation grapples with maintaining its oil facilities amidst Western sanctions that have significantly impacted its production capabilities. OPEC data highlights Iran's oil production trajectory, showing a peak of 3.85 million barrels per day in the first quarter of 2018, followed by a decline to an average of two million barrels per day by the year's end due to US sanctions. However, recent OPEC data indicates a slight recovery, with Iran's oil production reaching approximately 3.2 million barrels per day in April, nearing its highest level since the resumption of US sanctions in May 2018.
Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), holds the distinction of being the third-largest oil producer within the organization, trailing behind Saudi Arabia and Iraq. The decision to increase oil production underscores Iran's efforts to mitigate economic challenges and maintain its position within the global oil market amidst ongoing geopolitical tensions and sanctions.
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