The Organization of the Petroleum Exporting Countries (OPEC) has reported a 17% decline in oil prices and a 12% increase in Iran’s oil production volume for 2023.
According to the latest report, the average price of heavy oil exported by Iran’s regime in the previous year was approximately $83, marking a decrease from the $100 recorded in 2022. Notably, this figure excludes the expenses related to bypassing sanctions and substantial discounts provided to Chinese refineries.
In 2023, Iran regime’s daily oil production averaged 2,855,000 barrels, representing a noteworthy 300,000 barrel increase, equivalent to 11.7%, compared to 2022. This growth was particularly prominent during the summer when regime’s oil exports to China reached their peak. However, with a subsequent decline in its oil exports, especially in the last month, the regime scaled back some of its oil production.
OPEC states that Iran regime’s oil production was three million and 143 thousand barrels in December of the previous year, a slight decrease of 11 thousand barrels compared to November 2023.
Prior to the imposition of U.S. sanctions, the regime produced over 3.8 million barrels of crude oil daily, with two million barrels being exported. Additionally, the regime exported half a million barrels of gas condensate daily.
Data from the Commodity Information Company, Keplr, indicates that the regime’s average oil and gas condensate export in the preceding year was 1.250 thousand barrels, which is equivalent to half of its oil export volume before the U.S. sanctions.
In the current year’s budget, the regime has set the price of oil per barrel at $85, only $2 less than the 2023 price of Iranian heavy oil. The budget also includes the export of 1.5 million barrels of oil and gas condensate, reflecting a 17% reduction compared to Iran’s oil export volume in the previous year.
Practically, over 80% of the budgeted oil export revenues should have been realized. However, data from the regime’s Parliament Research Center reveals that only 55% of the seven-month oil budget has been achieved in the current solar year.
This discrepancy underscores the significant wastage of the country’s oil revenues due to the costs associated with bypassing sanctions and the substantial discounts provided to Chinese refineries. A recent Reuters report highlighted that the regime has offered Chinese refiners an average discount of $13 per barrel over the past year.
