TEHRAN – Iran’s oil production in July reached 3.22 million barrels per day (bpd), the highest level since the U.S. withdrew from the nuclear pact with Iran and re-imposed sanctions on the country in 2018, Reuters reported.

Based on a Reuters survey published on Friday, Iran has been boosting exports in the last few years despite U.S. sanctions remaining in place.

OPEC in its latest report released in early July said Iran produced 3.251 million bpd of crude oil in June, registering a 13,000-bpd increase compared to the previous month.

Based on secondary sources, Iran produced 3.238 million bpd of crude oil in May, the report said.

The Islamic Republic’s average crude output for the second quarter of 2024 stood at 3.237 million bpd indicating a 58,000-bpd increase compared to the figure for the first quarter of the year, the report said.

The report put the average Iranian crude output for 2022 at 2.554 million bpd, while the average output in 2023 was 2.859 million bpd.

These statistics show that the Islamic Republic has maintained its place as the third-largest oil producer among the OPEC members.

Iran’s average crude oil price increased by $4.76 per barrel in the first half of 2024 compared to the same period last year, according to the report.

According to OPEC, Iran’s crude oil was sold at $83.65 per barrel on average in the mentioned period.

The OPEC’s average crude oil price in June 2024 decreased 37 cents and reached $83.32 per barrel, the report added.

Earlier in April, the International Monetary Fund (IMF) reported that Iran's oil production in 2023 saw an increase of 500,000 bpd in comparison to the previous year, reaching 3.1 million bpd.

According to the IMF data, the oil sector of Iran's economy recorded a noteworthy growth of 15 percent in 2023. Over the three years of late President Ebrahim Raisi’s tenure, this sector experienced a double-digit growth; therefore, the oil sector saw 10.1 percent, 10 percent, and 15 percent growth respectively in 2021, 2022, and 2023.

It is predicted that Iran's oil production will increase by another 100,000 bpd, reaching 3.2 million bpd in 2024.

Iran's gas production also increased from the equivalent of 4.8 million barrels of oil per day in 2022 to the equivalent of 5.1 million bpd in 2023. According to IMF, the figure is expected to rise by 300,000 bpd to reach the equivalent of 5.4 million bpd in 2024.

Iran exported 1.4 million barrels of oil per day in 2023, indicating an increase of 500,000 barrels compared to its oil export data in the previous year, and it is expected that in the current year, an additional 100,000 barrels would be added to Iran's oil exports, reaching 1.5 million bpd.

OPEC oil output also rose in July as a rebound in Saudi Arabian supply and small increases elsewhere offset the impact of ongoing voluntary supply cuts by other members and the wider OPEC+ alliance.

The Organization of the Petroleum Exporting Countries pumped 26.70 million bpd last month, up 100,000 bpd from June, according to the survey based on shipping data and information from industry sources.

The increase comes despite OPEC+, which comprises OPEC and allies such as Russia, keeping in place most of its output cuts until the end of 2025 to bolster the market in the face of tepid demand growth, high interest rates and rising U.S. production.

A meeting of top OPEC+ ministers on Thursday kept oil output policy unchanged including a plan to start unwinding one layer of output cuts from October, and repeated that the hike could be paused or reversed if needed.

EF/MA