Oil production in Iran reaches 5-year high last month
(MENAFN) In July 2024, Iran’s oil production surged to 3.22 million barrels per day (bpd), marking the highest output level since the U.S. withdrew from the nuclear deal with Iran and re-imposed sanctions in 2018, according to Reuters. This uptick follows a trend of increased exports despite ongoing U.S. sanctions.
A Reuters survey highlighted that Iran's production in June was slightly higher at 3.251 million bpd, showing a modest increase of 13,000 bpd from May's production of 3.238 million bpd. The average crude output for the second quarter of 2024 was reported at 3.237 million bpd, which represents a 58,000-bpd rise from the first quarter of the year.
For context, Iran’s average crude oil production for 2022 was 2.554 million bpd, while it increased to 2.859 million bpd in 2023. These figures confirm that Iran remains the third-largest oil producer among OPEC members.
The price of Iranian crude oil also saw an increase in the first half of 2024, rising by USD4.76 per barrel compared to the same period in the previous year. The average price for Iranian crude during this period was USD83.65 per barrel. However, OPEC’s average crude oil price in June 2024 fell by 37 cents, reaching USD83.32 per barrel.
The International Monetary Fund (IMF) had previously reported in April that Iran’s oil production in 2023 had risen by 500,000 bpd compared to the previous year, reaching 3.1 million bpd. This growth reflects a notable 15 percent increase in the oil sector for 2023. Under the late President Ebrahim Raisi’s administration, the sector experienced consecutive years of double-digit growth: 10.1 percent in 2021, 10 percent in 2022, and 15 percent in 2023.
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