Iran struggling to increase oil sales

Fuel Fix:

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Both IEA and OPEC data in recent months indicate that Iran’s oil production appears to have stalled. We see a similar theme in our ClipperData; after loadings reached 2.6 million barrels per day in May, we have seen them holding below this for the past three months. We have also seen Iranian floating storage at Asaloyeh drop off in recent months too.

Even though Iran has exported crude to ten different European countries since the lifting of sanctions at the beginning of the year, it is still struggling to navigate payments through certain banks given ongoing U.S. sanctions. In addition to this, an ongoing lack of foreign investment is also seen hindering production, ergo exports.

Falling short of its production target of 4 million barrels per day casts further uncertainty on Iran’s involvement in a production freeze, something they were completely unwilling to entertain in April.
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Their inability tp navigate basic banking arrangements has, in effect, imposed a  production freeze on Iran.  Iran's windfall from the bad nuke deal Obama negotiated with them has probably eased the need for ramped up production during the short term.

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