The setback for Iranian oil … the decline in production continues

The setback for Iranian oil … the decline in production continues
The setback for Iranian oil … the decline in production continues
For the third year in a row, US sanctions imposed on Iran continue to dominate the crude oil production sector across the country.

For the sixth month, Iran’s total oil production is less than two million barrels per day, compared to an average of 3.85 million barrels per day, before the US sanctions imposed on the country, since November 2018.

The Organization of Petroleum Exporting Countries (OPEC) said in its monthly report that Iran’s oil production last September amounted to 1.96 million barrels per day, compared with 1.942 million barrels per day last August.

For the sixth consecutive month, Iran’s oil production is less than two million barrels per day, as production reached 1.93 million barrels in July, 1.947 million barrels per day in June, 1.954 million barrels in May, and about 1.973 million barrels per day in April 2020, According to the data.

The economy is in severe trouble

The Iranian economy is reeling between challenges that are the most difficult in the history of the local economy, linked to the increase in the pace of US sanctions on Tehran and the joints of its domestic economy, in addition to rampant corruption, which led to a further collapse in exchange rates.

The administration of US President Donald is considering imposing new sanctions on the Iranian regime, which would further isolate Tehran’s economy from the world, and also obstruct the Democratic presidential candidate Joe Biden’s plans to return to the nuclear deal if he wins the elections.

Iran has entered the US sanctions imposed on it since 2018, due to its non-peaceful nuclear program, and its insistence on expanding its internationally banned weapons program, provided that oil data will be issued this August during later next month.

In November 2018, a new US sanctions package was applied on Iran, which affected the oil industry in terms of production, export and transportation, in addition to other financial sanctions that prevented Tehran from receiving oil revenues if exported away from official channels.

OPEC data

On an annual basis, a survey by Al-Ain News, referring to the historical data of OPEC, showed that Iran’s oil production during the past month decreased by 12.5%, down from 2.26 million barrels per day in September 2019.

The US sanctions imposed on Iran led to the escape of companies operating in Iran in the oil sector, such as the French Total, which is active in the field of exploration and production, and the Danish Maersk Tankers specialized in transport, in addition to foreign banks.

As a result of the decline in crude oil production and exports, the country entered into a severe crisis with abundant liquidity, especially foreign exchange, prompting the government and the Central Bank to impose strict restrictions on foreign exchange movement in the country, and cancel 4 zeros from the local currency.

Iran’s oil production had witnessed a significant growth in July 2015, due to the signing of the nuclear agreement at the time, and Tehran’s international ambitions in the oil markets were quickly dashed by the US sanctions.

In 2018, Iran’s average daily production of crude oil was about 3.553 million barrels per day, while its average daily production in 2019 was about 2,356 million barrels per day, according to official WHO data.

The sharp decline in production and exports has deepened recession and crippled the main source of income. The decline in activity also caused the layoffs of large numbers of workers in the Iranian oil sector, according to “Al-Ain News.”

These were the details of the news The setback for Iranian oil … the decline in production continues for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT US Fed holds key rate steady for fourth straight meeting