EMEA News
Iran: Oil Output to Reach 4.2 Million bpd by End of 2016
Goldman Sachs Group Inc. (Goldman Sachs)'s "lower for longer" outlook for oil, something that could mean low bunker prices low for the next 15 years, has seen further support with reports form Iran that the country aims to boost oil output to 4.2 million barrels per day (bpd) by the end of 2016.
The global oil market already over supplied thanks to continued overproduction, and Iran's Press TV Tuesday noted the country's current production stands at 2.8 million bpd.
"Can we wait and not produce after lifting the sanctions? Who can accept it in Iran," Iranian Oil Minister Bijan Namdar Zanganeh told CNN earlier this month.
"Do you believe that ... our country will accept not to produce, to secure the market for others? It's not fair."
Zanganeh has previously said the country's oil output will increase by 500,000 bpd as soon as sanctions against the country are lifted, and "will return to the level of 3.8-3.9 million barrels" a few months after that.
Ship & Bunker reported Monday that several reports have indicated that in recent weeks Iran has been significantly ramping up its oil and petroleum products export activity, and the Tehran Times Wednesday reported that data from state-run Korea National Oil Corp showed South Korea's August crude imports from Iran almost doubled month-on-month to 4,054 tonnes, up from 2,068 tonnes in July.
The figure was nevertheless down 2.7 percent for the period year-on-year.
The Tehran Times this week also reiterated Iranian ambassador Hassan Taherian's comments from earlier in the year that the Islamic Republic "will do our best to be competitive, and as much as possible to have a share of market here in South Korea."
Earlier this week Ship & Bunker reported that Iran has set its draft budget for the coming year based on oil priced between $42 and $50 per barrel, even though it says the majority of OPEC believes a "fair" price would be $70 to $80 per barrel.
