Iran Claims Oil Exports Higher Than Gov’t Target

Iran's oil exports have surpassed the government's 1.4 million barrels per day target, the head of Iran's Plan and Budget Organization said on Sunday.

"Based on Iran's current budget, the government aims at exporting 1.4 million oil barrels per day, an objective which has now been surpassed thanks to the Oil Ministry's efforts," Davoud Manzour said.

The administration of Ebrahim Raisi based the budget of the current Iranian year (started March 22) on 1.4 million barrels of oil exports per day, however, the government expected to sell each barrel for $85. This would mean more than $43 billion in oil revenues from March 2023 to March 2024.

Iran’s heavy crude is worth about $80 on paper but the regime sells its oil clandestinely mostly to China with hefty discounts, to range from $40 to $50 a barrel, including payments to middlemen facilitating the illicit shipments.

Iran International reported in December that Tehran provides huge discounts to China, charging as little as $37 per barrel. A report by The Wall Street Journal in July said Iran is exporting the highest amount of crude oil in five years, but it offers discounts of up to $30 per barrel.

Prior to the re-imposition of US sanctions in 2018, Iranian oil exports were about 2.8 million barrels per day.

Iran's crude exports declined from 2 million to 200,000 barrels per day after the United States began imposing sanctions in 2018. Shipments began to increase in late 2020 when it became clear that President Joe Biden wanted to revive the JCPOA nuclear agreement with Iran abandoned by his predecessor. Critics have accused his administration of not enforcing the sanctions and allowing China to buy around one million barrels per day from Iran.