Iran's oil exports will continue to decline

Business Materials 7 March 2020 20:14 (UTC +04:00)
As a result of US sanctions, Iran's oil exports will continue to decline
Iran's oil exports will continue to decline

BAKU, Azerbaijan, March 7

By Elnur Baghishov - Trend

As a result of US sanctions, Iran's oil exports will continue to decline, Iranian expert on energy issues Mehrdad Emadi told Trend.

According to Emadi, Iran's oil exports will be one-fourth of one million barrels.

Emadi added that oil production in Iran will also decline by more than 50 percent compared to the time when the US imposed new sanctions on Iran (November 2018).

Iranian expert said the decline in oil exports would have an impact on production. Thus, the demand for oil in the country will be significantly reduced.

“Over the past 23-24 years, Iran's oil wells will face a huge blow because they are not well managed. After the Iran-Iraq war (1980-1988), Iran's oil sector will face serious losses,” he said.

According to Emadi, US sanctions against Iran have a greater impact on the oil and petrochemical sector.

Iranian expert said that economic growth in the world will not be 1 percent of 75 percent this year and it will not be divided equally between different sectors. Sectors with high energy consumption, aluminum, steel, car-building, tourism services are affected by the events in the world.

"In the meantime, the oil market is very worried about sales. The result can be seen in future contracts on the London markets,” he said.

Emadi said that when they put it all together, Saudi Arabia, Iraq, and even Russia had to make some changes.

Regarding the rejection of a proposal to reduce production, the Iranian expert said that Russia is trying to push the US market for shale oil to keep oil prices low.

In general, Iran has 125 oil fields and 59 gas fields. Iran's total hydrocarbon reserves are 836 billion barrels. With its technology equipment, it can produce 239 billion barrels. Iran can use 29 percent and 71 percent remain underground.

US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies and individuals.