Decline rate in Iran’s oil output to slow in H2 2019
Baku, Azerbaijan, July 11
By Leman Zeynalova – Trend:
The decline rate of Iran’s oil output is expected to slow in the second half of 2019, Trend reports with reference to the Short-Term Energy Outlook (STEO) of the Energy Information Administration (EIA).
EIA estimates that Iran’s crude oil and condensate production decreased by 1.7 million b/d since May 2018, when the United States announced its plan to withdraw from the Joint Comprehensive Plan of Action and reinstate sanctions in November 2018.
US sanctions on Iran’s exports of crude oil and non-crude liquids have forced Iran to store the liquids it cannot export or consume domestically.
EIA assumes that US sanctions on Iran’s oil exports will remain in place through the end of the forecast period.
Although Iran’s crude oil production declined at an average rate of 120,000 b/d per month since May 2018, EIA expects the decline rate to slow in the second half of 2019, as domestic Iranian consumption grows with power plants switching from natural gas to crude oil for electric power generation.
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