Iran ready to raise output as market may face shortage in next few months

Iran, whose energy trade is pressed by US sanctions, is ready to pump more oil as the world needs the crude to balance supply and demand and calm prices before travel seasons in the US and Europe, the oil minister Javad Owji said, according to economic daily Donyay-e Eqtesad.

Iran could increase production to levels before the sanctions, he said, without giving an estimate of current output. “There are some worries about oil supply shortage in the coming months,” he said, despite some concerns about economic slowdown and possible curbs to demand because of geopolitical tensions.

Iran’s oil production was 3.8 million b/d before the Trump administration imposed sanctions in 2018. The OPEC member recently said its oil production capacity has topped that figure. In May, according to the Platts survey by S&P Global Commodity Insights, output was 2.58 million b/d, holding at the highest level since March 2019.

“The oil market is in such situation that return of Iran’s oil to the market can partially respond to customers and help the global markets reach balance and tranquility,” Owji said.

“Particularly, we will be watching global demand increase for oil and oil products as the summer and travel seasons in the Unites States and Europe are approaching,” he said.
Source: Platts