Iran’s oil production increases last month despite drop in OPEC output
Date
10/15/2024 8:58:34 AM
(MENAFN) In its latest report, OPEC revealed that Iran's crude oil production reached 3.316 million barrels per day (bpd) in September 2024, marking a 21,000-bpd increase from the previous month. Despite this rise in Iranian output, overall production across OPEC members saw a decline of 604,000 bpd during the same period. With this boost, Iran has solidified its position as the third-largest oil producer within OPEC, following Saudi Arabia and Iraq. This increase in production underscores the country’s steady efforts to bolster its output, particularly after producing 3.295 million bpd in August.
Iran’s average crude oil production for the third quarter of 2024 stood at 3.3 million bpd, reflecting a significant rise of 62,000 bpd from the second quarter. The data also shows the country’s upward trend in production over the past few years. In 2022, Iran's average daily production was 2.554 million bpd, which rose to 2.859 million bpd in 2023. These figures indicate a gradual recovery in Iran’s oil industry, despite external pressures such as sanctions. However, the average price of Iranian crude oil saw a decline in September, dropping by USD7.01 per barrel to USD73.59, compared to USD77.63 in August.
Looking back, the International Monetary Fund (IMF) had previously reported that Iran's oil production rose by 500,000 bpd in 2023, bringing it to 3.1 million bpd. This increase contributed to a 15 percent growth in the oil sector that year, following consecutive double-digit growth in previous years under President Ebrahim Raisi. From 2021 to 2023, the sector experienced growth rates of 10.1 percent, 10 percent, and 15 percent respectively. This upward trajectory is expected to continue, with predictions suggesting that Iran’s oil production will rise by an additional 100,000 bpd in 2024, bringing the total output to 3.2 million bpd.
In parallel, Iran’s gas production has also seen considerable growth, rising from the equivalent of 4.8 million bpd in 2022 to 5.1 million bpd in 2023. The IMF anticipates that this trend will persist, with a further increase of 300,000 bpd expected in 2024, reaching 5.4 million bpd. On the export front, Iran sold 1.4 million bpd of crude oil in 2023, marking a 500,000 bpd increase from the previous year. This upward trajectory in exports is forecasted to continue, with an additional 100,000 bpd expected to push the country’s oil exports to 1.5 million bpd in 2024.
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