Washington, DC – US Energy Secretary Chris Wright said that Iran has reduced its oil production by approximately 400,000 barrels per day. He predicted that this decline would continue in the coming period as storage facilities approach full capacity and crude exports become more difficult.
In a television interview with Fox News, Wright explained that preliminary data indicates a significant decrease in Iranian production. He added that Tehran may continue to gradually reduce its production as a result of export restrictions and its oil storage facilities reaching capacity.
Export restrictions and storage concerns
The US Secretary of State indicated that Iran’s ability to export oil has become limited, placing additional pressure on its energy sector. He also noted that these developments could push it to further reduce production in the coming period.
In the same context, Janeev Shah, Vice President of Commodity Markets at Rystad Energy, said that Iran is still able to load shipments from its ports. However, restrictions on tanker passage through the Strait of Hormuz reduce the flexibility of its oil exports.
Marine stockpiles and economic pressures
Shah added that Iran could approach its maximum storage capacity within weeks, both on land and via tankers, potentially forcing it to reduce production. He considered the coming months to be “critical” if a political settlement is not reached.
He also noted that the amount of Iranian oil stored outside the country is estimated at around 140 million barrels. However, the biggest challenge lies in selling it amidst the sanctions and restrictions, with limited reliance on foreign markets, particularly the Chinese market.
