Iran’s oil exports reach 5-year high despite US sanctions
“Despite US sanctions, Iran’s oil exports hit a 5-year high, preventing a substantial increase in oil prices amidst West Asian conflict,” according to reports.
The report reveals that Iranian crude oil exports grew by approximately 50 percent last year, reaching a five-year high of about 1.29 million barrels per day. Notably, the majority of Iran’s oil exports were directed towards China.
The International Energy Agency (IEA) stated that Iran produced 2.99 million barrels of oil daily in 2023, an increase of 440,000 barrels compared to 2022. The agency also predicted a further increase of 160,000 barrels in Iran’s daily crude production in 2024.
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The surge in Chinese demand for crude oil has spurred Iran’s efforts to boost its oil production, with a significant portion of Iran’s crude oil exports now being purchased by numerous oil refineries in China.
Kpler, a research company based in Europe, reported that approximately 90 percent of Iran’s crude oil exports were destined for China, reflecting the evolving trade relationship between the two countries.
The strengthening ties between Iran and China have also been emphasized, with Iranian President and his Chinese counterpart meeting and calling for the removal of US sanctions during their discussions in Beijing.
This unexpected increase in Iran’s oil exports, despite US sanctions, demonstrates the evolving dynamics of the global oil market and the significant role played by Chinese demand in shaping Iran’s oil production and export strategies.
