Iran preparing for a strong comeback to oil market

May 16, 2021 - 15:43

TEHRAN - Iran is gradually boosting crude oil production to get ready for a strong comeback into the global market as the talks with world powers over the 2015 nuclear deal show signs of progress.

According to a Bloomberg report, National Iranian Oil Company (NIOC) officials have stated that the country’s oil fields are going through overhaul operations and connections with oil buyers are being re-established.

“In the most optimistic estimates, the country could return to pre-sanctions production levels of almost four million barrels a day in as little as three months,” the report said.

Iran and other signatories of the 2015 nuclear deal, including the United States, are currently negotiating in Vienna and the two sides have signaled that an agreement is within reach.

If successful, the negotiations could reactivate the nuclear deal that Donald Trump withdrew the U.S. from in 2018. That would require the U.S to lift all the sanctions imposed by the former president.

Iran has been ramping up its oil production over the past few months following the recent developments in the White House and also the recovery of the global markets from the negative impacts of the coronavirus pandemic.

The increase in the production has been followed by a boost in exports so that in late April Reuters reported that Iranian crude oil exports in the mentioned month had remained above the level of exports during the same period in 2020.

Earlier this month, Iran’s First Vice-President Eshaq Jahangiri said the country was able to increase its oil exports up to 2.5 million barrels per day (bpd) once the U.S. sanctions are lifted.

"Oil sales have dropped a lot, but now the situation is better, and we are in control. We will be able to increase oil exports to 2.5 million barrels per day after the removal of the sanctions," Jahangiri said.