Iran fourth largest oil exporter in OPEC

Iran has become the fourth largest oil exporter within the Organization of the Petroleum Exporting Countries (OPEC) due to a surge in oil production and export.

Iran's oil and gas condensate exports have now reached their highest level since 2018, when the United States withdrew from the Iran nuclear deal and introduced tough economic sanctions against the country, targeting its oil sales in particular, according to a report by Vortexa, which provides data on the global energy sector.

The report emphasized that Iran's oil and gas condensate exports now account for 9% of OPEC's total crude oil and gas condensate exports.

Iran exported 1.56 million barrels of oil per day from January to May of this year, 250,000 bpd more than Kuwait and Nigeria. This has elevated Iran's ranking to the fourth spot among OPEC's largest crude oil exporters.

Despite Western sanctions, Iran managed to increase its crude oil and gas exports to 1.7 million bpd in May, the highest level in the past five years.

The report cited the rise in Chinese oil demand and the expansion of Iran's oil tanker fleet as the main factors contributing to the surge in Iran's oil exports.

Ever since the late Iranian President Ebrahiam Raisi took power in August 2021, the country’s oil exports have been on an upward trajectory.

The rise in Iran’s oil exports has taken place despite tough US sanctions which aimed to choke off Iran’s oil industry as a main source of revenue for the Islamic Republic.

Financial Times cited figures by data company Vortexa last month noting that Iran was exporting more oil than at any time for the past six years, giving its economy a US$35 billion a year boost.

The report said that Tehran sold an average of 1.56 million barrels a day during the first three months of 2024, almost all of it to China and its highest level since the third quarter of 2018.

“The Iranians have mastered the art of sanctions circumvention,” said Fernando Ferreira, head of a geopolitical risk service at the Rapidan Energy Group in the United States.

Iran’s oil minister Javad Oji said in March that oil exports had “generated more than US $35 billion” in the preceding year.

On another occasion, he said that while Iran’s enemies wanted to stop its exports, “today, we can export oil anywhere we want, and with minimal discounts”.