Iran cuts oil production and storage is nearly full amid pandemic, US sanctions
Reuters reported that Iran's onshore storage facilities are nearly full while production is at its lowest point since the Iran-Iraq war.
Iran has a glut of unused oil as it cuts production amid the COVID-19 pandemic and US sanctions.
Crude oil production was at its lowest level in 40 years in June and storage facilities and vessels are nearly full in Iran, Reuters reported today.
Iran had 63 million barrels of onshore oil in June. There was a surge in April at the height of the pandemic. The level of onshore reserves was only 15 million barrels in January. The June figure constitutes around 85% of Iran’s storage capabilities, according to Reuters.
Production was as low as 1.9 million barrels per day in June, the lowest level since 1981 after the start of the 1980-88 Iran-Iraq war, Reuters reported. In comparison, Iran produced more than 3.5 million barrels per day in 2018, according to OPEC data. By September 2019, production was less than 2.5 million barrels per day, according to data obtained by the BBC.
