Iran Targets 3.4mn bpd Crude Production in Coming Weeks vs 3.3mn bpd Currently

Iran expects to increase its daily crude output to 3.4mn bpd in ~10 days according to the managing director of the National Iranian Oil Company, Mohsen Khojastehmehr, on September 20.

• That is up from current post sanction high levels of 3.3mn bpd.
• Within five years, Iran's oil output will increase to 5.7mn bpd, while gas output will amount to 1.5bcm he said.
• “In terms of oil and gas, Iran holds the equivalent of 340bn barrels of oil across 400 petroleum reservoirs, and we have secured the top position in the world [in terms of storage capacity],” he said.
• Iranian crude oil exports have also reached their highest levels in over four years, at approximately 1.5mn bpd in recent months.
• Iran’s ability to export more barrels is complicated by sanctions with China one of the only real buyers of its oil. Iranian barrels tend to travel via convoluted paths like via Malaysia where they are re-exported or blended with other grades to try and hide their origin.
• China’s official imports from Iran stand at zero while those from Malaysia are way above the countries actual production capacity because of the practice.