JP Morgan: Iran’s oil output to fall to 2.4 mln bpd by late 2012

Oil&Gas Materials 3 July 2012 18:04 (UTC +04:00)

Azerbaijan, Baku, July 3 / Trend A.Badalova /

Iran's oil output will fall to 2.4 million barrels per day (bpd) by the end of 2012 and remained stable at this level during all 2013, analysts at the U.S. bank JP Morgan expect.

"We still assume that Iran's output will decline to 2.4 million bpd over the course of 3Q2012, as European buyers of its crude strictly adhere to the European sanctions," analysts said in their oil market report.

Analysts expect Iran's oil production at 2.5 million bpd in the third quarter of 2012 compared to 3.13 million bpd in the second quarter.

According to the analysts' estimates, Iran's oil output amounted to 3 million bpd in June, 2012 compared to 3.63 million bpd in June, 2011.

July 1 marks the beginning of the European Union's ban on purchasing Iran's oil. European companies will no longer be involved in insuring Iran's oil. The measures come on top of previous sanctions levied by the U.S. and the West that have already hit Iran's economy.

Last year, Iran's crude exports were running at about 2-2.2 million bpd with total production, including domestic consumption at 3.5-3.6 million bpd.

There is no timely official data on Iran's crude export levels and there are often differences on the opinion among those monitoring its supplies on the rate of shipments.