How Iran Could Trigger The Next 10 Percent Drop In Oil Prices

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Assessment: Iran announced plans last week to boost oil production from its supergiant South Azadegan oil field to at least 320,000 barrels per day …

  • The development of the West Karoun fields are instrumental to the 25-year deal between Iran and China
  • The impact of additional Iran crude flows on global oil prices could be significant against a background of uncertain demand in the coming months

Given ongoing high and steady sales of crude oil to China and other Asian countries and the likelihood of a new iteration of the Joint Comprehensive Plan of Action (JCPOA) being agreed with the U.S. at some point this year, Iran announced plans last week to boost oil production from its supergiant South Azadegan oil field to at least 320,000 barrels per day (bpd) by the middle of 2023, from the current 140,000 bpd.

“After many days you will be called to arms. In future years you will invade a land that has recovered from war, whose people were gathered from many nations to the mountains of Israel, which had long been desolate … Ez. 38:8

 

 

 

 

 

 

 

This output from South Azadegan, and corollary increases in North Azadegan and other major fields that make up the oil-rich cluster of fields in the West Karoun region, will enable Iran to meet its long-standing target of 1 million bpd from this specific region within the next year or two, according to recent comments from the National Iranian Oil Company’s (NIOC) managing director, Mohsen Khojastehmehr.

To this end, OilPrice.com understands from sources close to Iran’s Petroleum Ministry, Javad Owji – the country’s new Petroleum Minister, met recently with senior representatives from China National Petroleum Corporation (CNPC) to discuss the development status of the West Karoun fields in general and of the South and North Azadegan fields in particular.

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