Industry and Energy

Home page

Industry and Energy

Iranâ€™s oil output falls to a 20-year low

10 July 2012 13:42 (UTC +04:00)

Oil traders and western policy makers who monitor Iranian oil production estimate that Tehran pumped 3.2m barrels last month, the lowest amount since 1992. That is below the depressed level of 1999, when members of the Opec oil cartel implemented draconian production cuts to shore up oil prices, which had fallen below $10. â€œThe full scale of the Iranian sanctions is yet to be fully appreciated by the market,â€ James Zhang, oil analyst at Standard Bank in London, said in a note to clients. Just five years ago, Iran produced 4.2m b/d. It pumped 3.7m b/d last year.

Iranian oil production has fallen well beyond the initial expectations of Washington and Brussels as the latest round of sanctions over Tehranâ€™s nuclear programme disrupts an industry already suffering from years of under-investment.