Iran’s Oil Exports Fall as Competition From Russia in Asia Grows

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According to people with direct knowledge of the Islamic Republic's sales, Iran's oil exports have fallen recently due to increased competition from Russia.

People who asked not to be named as the information is private said that Tehran's daily crude exports have fallen from a peak of 1 million barrels to an average of 750,000 barrels.

Iranian shipments are going head to head with those from Russia in countries such as China, prompting Tehran to review and adjust its prices to remain attractive.

The US has imposed sanctions on Iran. Tehran has had to offer buyers discounts because of that. The majority of its cargo goes to China.

Is a deal with Iran going to affect oil markets?

Europe retaliated against the invasion of Ukraine by imposing sanctions on Moscow. Chinese teapots have increased purchases of Russian grades like ESPO and Urals, which are also discounted.

Iran is supplying its local refineries with 2.1 million barrels of crude oil a day, meaning the country's total production is around 2 million barrels a day. If the nuclear deal with world powers is revived, it will be prepared to increase exports.

Negotiations over the so-called Joint Comprehensive Plan of Action, which eases sanctions on Iran in exchange for it curtailing nuclear activities, have stopped recently. Analysts don't think it will be restored before the mid-term elections.

Tehran has a production capacity of 4 million barrels a day and would like to increase that to 5.7 million, according to the Oil Minister.

Golnar Motevalli helped with the project.