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Iran Oil Exports Continue To Prosper
9 Apr 2014
Since the sanctions imposed by the Western powers have taken effect during the early 21st Century Iran’s oil exports appear to have taken a bit of a hit. In November 2013 there was a successful meeting which recognised that Iran was making steps to reduce its nuclear experiments. In consequence the 6 main powers allowed Iran a period of time (From January of this year until June 2014) when sanctions would be relaxed for a temporary period.
Iran still remains a main player in the oil Industry
The U.S. and European sanctions have cut Iran's oil exports by more than half over the past 18 months to about 1 million barrels a day. But looking back over the early years of this century Iran still remains one of the most important suppliers of petroleum and oil across the globe. Since this time matters continue to look positive and Iran has increased trade globally and with its close neighbours. In last week’s article we mentioned how trade is especially good between such countries as China and India.
Statistics show how important Iran exports are to Iran
Oil has always been an important export for Iran. In 2004 oil was the country’s primary source of foreign currency when it produced over 5% of the world’s total crude oil supplies. Statistics show that the proceeds from the production of oil in 2006 represented about 19% of the gross domestic product (GDP). In 2012 Iran was clearly a large player in the petroleum market, and still remains very important.
1.5 Milllion barrels of crude oil a day
In 2012, it was estimated that Iran exports around 1.5 million barrels of crude oil a day, and was the second-largest exporter among the Organization of Petroleum Exporting Countries. When this translated to revenue we find that in the same year, Iranian officials estimate that Iran's annual oil and gas revenues could reach $250 billion by 2015. Overall, Iran plans to invest a total of $500 billion in the oil sector before 2025.
Russia has recently been reported to be negotiating a deal with Iran that would take the form of oil for goods. Under the contract Russia would buy up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods. As much as this would lift Iran’s oil export prospects substantially many are cautious as they feel it will undermine the sanctions proposed in November 2013.
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