Iran is preparing to increase crude oil exports

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Iran has prepared to raise oil exports to America as they believe that the Biden Presidency will allow for some ease in the sanctions imposed by the Trump Administration over the previous years.

A statement was released by President Hassan Rouhani on his official website which said, Tehran will take measures to prepare resources and oil-industry equipment for the production and export of oil in line with current capacity within the next three months. “We’re ready to quickly raise oil production,” he said.

The president has also released a statement which said that post the signing of the 2015 Nuclear deal with America and other European nations, Iran was able to raise oil exports to two million barrels a day.

JPMorgan Chase & Co has said that if the deal with Biden’s government takes place, Iran could raise oil exports to 1.2 million barrels by next year. While this production boost will be beneficial to Iran, it will prove to be problematic for OPEC, who is trying to keep curde oil prices in check in light of the pandemic. Despite being a part of OPEC, Iran has been given exemption from participating in the price cut due to the imposition of various sanctions. 

Due to the imposition of the American sanctions Irans crude oil export dropped from 2 million to only 133,000 in 2017. When President Trump walked away from the nuclear deal in 2018, Iran’s crude oil export dropped by half to 1.9 million barrels a day. Most of Iran export deals are made with China.

Biden is scheduled to take office in January 2020 has signaled that he would want to partner with Iran once again.

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