After former U.S. President Donald Trump removed the United States from the 2015 nuclear accord and reimposed sanctions to curb oil exports, the regime faced a blow to its nuclear building efforts. Now, post President Joe Biden entering the presidency, “Iran’s crude exports and oil output have hit new highs in 2023” reports Reuters. China is Iran’s biggest customer, followed by Syria and Venezuela, according to analysts and shipping data.
Exports have been rising during the term of President Joe Biden, as Iranian and Western officials continue to hold talks with the directive of halting the regime’s nuclear program. OPEC+, which includes OPEC, Russia and other allies, is cutting output to support the oil market, where expectations that economic weakness will dent demand have pressured prices.
Iranian crude exports exceeded 1.5 million barrels per day (bpd) in May, the highest monthly rate since 2018, according to Kpler, a provider of flows data. They were around 2.5 million bpd in 2018, before the U.S withdrawal from the nuclear deal.
Iran said in May it has boosted its crude output to above 3 million bpd. That’s about 3% of global supply and would be the highest since 2018, according to figures from the Organization of the Petroleum Exporting Countries (OPEC). A source familiar with the matter told Reuters earlier this month output was still at this level.
The International Energy Agency this week put Iran’s May production at 2.87 million bpd, close to Iran’s official figure.
A U.S. State Department spokesperson said all Iran sanctions authorities remain in effect. “We do not hesitate to take action against sanctions evaders, using all our available sanctions authorities,” the spokesperson said.
A U.S. State Department spokesperson said all Iran sanctions authorities remain in effect. “We do not hesitate to take action against sanctions evaders, using all our available sanctions authorities,” the spokesperson said.
However, Sara Vakhshouri of SVB, who has previously said during Biden’s term there hasn’t been any serious crackdown or action against Iran’s oil exports, stated, “Sanctions are in place but perhaps they are not fully implemented or monitored.”
“Also all of these supply volumes are in the dark market, where there is no transparency and so they are not reflected in formal global supply and export data.”