19 Sep

Iran’s Crude Oil Production Was Flat in August 2017

WRITTEN BY Gordon Kristopher FEATURED IN Commodities

Iran’s crude oil production

Iran is the third-largest crude oil producer among OPEC members. The EIA estimates that Iran’s crude oil production was flat at 3.8 MMbpd (million barrels per day) in August 2017—compared to July 2017. Production rose by 180,000 bpd (barrels per day) or 4.9% year-over-year.

Iran’s crude oil production is at an eight-year high. The production rose after the US lifted sanctions on Iran in January 2016. High crude oil production from Iran is bearish for crude oil (DWT) (BNO) (UWT) prices. Lower crude oil prices have a negative impact on oil and gas producers’ earnings like Northern Oil & Gas (NOG), Noble Energy (NBL), Chesapeake Energy (CHK), and QEP Resources (QEP).

Iran’s Crude Oil Production Was Flat in August 2017

Iran’s crude oil exports

According to market intelligence company Kpler, Iran’s crude oil exports rose by 180,000 bpd to 2.135 MMbpd in August 2017—compared to July 2017. Iran’s crude oil exports rose 9.3% month-over-month. Iran’s crude oil exports rose despite the production cut deal. Any rise in Iran’s crude oil exports is bearish for crude oil (FENY) (FXN) (IYE) prices.

Iran’s crude oil production plans 

Iran’s crude oil production averaged 3.5 MMbpd and 2.8 MMbpd in 2016 and 2015, respectively. Iran was allowed a small production increase in the production cut deal.

Iran plans to increase its crude oil production to 4 MMbpd by December 2017. The National Iranian Oil Company, a state-run monopoly company, plans to increase its production to 4.5 MMbpd by 2022.

Any rise in production from Iran would pressure crude oil (SCO) (BNO) (XLE) prices. Lower crude oil prices have a negative impact on oil and gas producers’ earnings like Northern Oil & Gas (NOG) and QEP Resources (QEP).

In the next part, we’ll discuss some crude oil price forecasts.

Latest articles

Hibbett Sports (HIBB) stock surged 22.3% as of 1:54 PM ET today as the company reported impressive results for fiscal 2019's fourth quarter, which ended on February 2.

Wall Street analysts expect a potential upside of 21.63% for Alexion Pharmaceuticals based on the stock's closing price on March 21.

Today, we got another round of dismal data points from Europe (VGK)(EZU). According to a Markit survey, Germany’s (EWG) March PMI Composite Output Index fell to a 69-month low of 51.5.

On March 21, US crude oil’s implied volatility was 24.9%, which was 6.7% below its 15-day average. Usually, lower implied volatility supports oil prices.

The overall cannabis sector took a hit today amid the broader market's declines. The volatility index (VIX) jumped 17.9%, and the cannabis sector is more sensitive than the market.

The tech-heavy NASDAQ Composite Index (QQQ) is on track to post its 12th weekly gain in 13 weeks.