Baku, Azerbaijan, Aug.3
By Aygun Badalova - Trend:
The removal of Iranian sanctions has boosted Iran’s production by 800,000 barrels per day thus far in 2016, analysts noted in their monthly Oil Market report, obtained by Trend.
“We expect further gains in production will be capped at 300,000 barrels per day by year end,” they said.
Analysts believe that Iranian oil supply growth is still healthy.
However Iranian crude production is trimmed to 3.7 million barrels per day in 3Q’16 and 3.8 million barrels per day in 4Q’16 from analysts’ earlier estimate of 3.9 million barrels per day, as a slower build up of production now looks more likely.
For 2017, JP Morgan analysts forecast Iran’s oil production to stand at 3.8 million barrels per day during all year compared to the average 3.5 million barrels per day in 2016.
Iran’s oil production has increased since January 16, 2016 when implementation of the Joint Comprehensive Plan of Action (JCPOA) and lifting of sanctions began.
Iranian oil officials announced that the country is planning to produce four million barrels of oil per day as of late August.
In a monthly report published on July 12, OPEC announced that Iran’s crude oil production reached 3.644 million barrels per day in June, about 77,800 barrels per day more than in May.