Iran sur­prises the world with record oil out­put

Alberta Oil - - OBSERVER | NEWS NUMBERS PEOPLE PLACES -

IT’S NO WONDER THAT CONGRESSIONAL

Repub­li­cans are lob­by­ing hard to re­in­state the U.S. govern­ment’s long-stand­ing Iran Sanc­tions Act. The law, which en­dorsed a block­ade of Ira­nian en­ergy, banking and trade, was dropped by the Obama ad­min­is­tra­tion af­ter six world pow­ers reached a deal with the Mid-East coun­try over its nu­clear power am­bi­tions last sum­mer. Since the sanc­tions fell on Jan­uary 1, OPEC’s third-largest pro­ducer has far out­paced the ex­port pro­jec­tions of an­a­lysts, reach­ing a five-year high of 2.6 mil­lion bar­rels a day in Septem­ber, and gob­bled up OPEC mar­ket share. China, In­dia, Ja­pan and South Korea are among the ma­jor Asian oil con­sumers that have sharply boosted their im­ports of Ira­nian crude in 2016. Those ex­tra bar­rels have slowed the oil price re­cov­ery in the U.S. and Canada, where most frack­ing and oil sands pro­duc­tion re­mains a com­par­a­tively high-cost gam­ble against cheap Ira­nian crude. With Asia look­ing to be the fastest-grow­ing mar­ket for en­ergy and con­sumer goods for the fore­see­able fu­ture, Iran is look­ing to lock down $130 bil­lion in for­eign in­vest­ment to mod­ern­ize its up­stream en­ergy in­fra­struc­ture af­ter years of ne­glect un­der the U.S.-led sanc­tions.

Source: OPEC

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