Iran struggles to expand oil exports… Reuters

Reuters reports that Iran will have trouble growing exports now that oil in floating storage is depleted and foreign investment for developing oil production is scarce…

Here is Reuters quoting Energy Aspects:

“”We do think that (floating storage) has been the primary cause of the boost in exports,” Energy Aspects analyst Richard Mallinson said, adding that now floating storage had ended total exports of crude and condensate were likely to slip.”

“After Western sanctions were eased, Iran’s output jumped from about 2.9 million barrels per day (bpd) to about 3.6 million bpd in June.

But it has barely risen since – fluctuating between 3.6 million and 3.7 million bpd – even though Iran fought hard with fellow OPEC members to be excluded from production cuts that came into effect on Jan. 1 and will last till June.”

And, on problems getting investment capital:

“The uncertainty over the U.S. position on further sanctions is casting a huge shadow on the oil trade with Iran,” said Paddy Rodgers, chief executive of tanker company Euronav.

“Iran needs billions of dollars of investment to boost crude oil production and natural gas capacity,” said Mehdi Varzi, a former official at state-run National Iranian Oil Company and now an independent consultant.”