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Oil minister: Iran's crude production at five-year high despite sanctions

Sunday, 10 March 2024 10:51 PM [ Last Update: Monday, 11 March 2024 2:15 AM ]

This file photo taken on July 25, 2005 shows a gas flare on an Iranian oil production platform alongside the country’s flag in the Persian Gulf. (via Reuters)

Iran's oil minister says the country’s production of crude oil has hit a five-year high since 2018 despite sanctions imposed by the United States on the Iranian energy sector.

Javad Owji made the remarks in a Sunday interview, saying that despite all obstacles created to impede Iran's oil exports in 2023, the country's crude exports have reached their highest in the past five years.

Stressing that Iran is still facing sanctions that are tougher than those, which existed in 2018, the minister said, "However, our oil exports have reached the highest level since that year."

“At the beginning of this administration, oil production in [Iran's] Khuzestan province stood at 1.7 million barrels per day, which has now reached 2.7 million barrels per day,” Owji said.

He added that natural gas production has also grown by five percent, and production capacity of many Iranian refineries has been boosted through projects implemented by Iranian specialists after foreign companies left the country due to US sanctions.

Sanctions on Iran failed to achieve objectives, harming civilians: US think tank

Sanctions imposed by the US on Iran and other countries have not only failed to achieve its foreign policy objectives but have also caused significant harm to civilians, says an American think tank.

The United States under former president Donald Trump reinstated crippling sanctions on Iran after unilaterally walking out of the 2015 nuclear deal in May 2018, despite Iran's full compliance with the terms of the agreement, officially known as the Joint Comprehensive Plan of Action (JCPOA).

One of the stated goals of Trump's sanctions, which were maintained by his successor, was to reduce Iran's oil exports to almost zero. Iran has repeatedly denounced the sanctions as an act of “economic war” and “economic terrorism.”

Report: Iran's oil exports hit 5-year high despite US sanctions

According to the Nikkei Asian Review, Iranian exports of crude oil grew by roughly 50 percent last year to a five-year high of about 1.29 million barrels per day.

Responding to a question about the possible impact of Trump's reelection as the US president on Iran's oil production, the minister said the return of Trump to power will have no effect on the country’s crude output.

“International organizations have admitted that Iran is currently facing no obstacles for selling its crude oil,” Owji said, adding, “I also reject reports about Iran selling its oil at a discounted price, and the price of Iran's exported oil is close to global rates.”

Last month, the International Monetary Fund (IMF) revised up its previous economic growth projection for Iran in 2023, attributing it to a higher-than-expected increase in the country’s oil production.

IMF upgrades Iran's 2023 growth rate to 5.4% citing oil output surge

The International Monetary Fund revises up Iran

Releasing its latest quarterly report, the IMF said Iran's economy grew 5.4 percent in 2023 showing a remarkable boost compared to the preceding year. The international agency had previously predicted a three-percent growth for the country's economy in that year.

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