Iran oil exports continue to breach terms of the joint plan of action (JPOA) agreed by the P5+1, with crude oil output reportedly reaching 1.14mn bpd in July 2014
Crude oil production in July stood at 2.762mn bpd, which actually equates to a decline of 9,800 bpd when compared to June 2014.
Iran’s oil output, however, increased by 86,000 bpd in Q2 2014 when compared to Q4 2013. These figures are according to a monthly report released by the Organisation of the Petroleum Exporting Countries (OPEC).
As part of ongoing discussions regarding the Iranian sanctions, agreed in November 2013, the EU and US enacted legislation on 20 January 2014 that allowed for temporary and limited relief from trade sanctions against Iran.
Inline with these temporary obligations, Iranian crude oil exports were limited to one million bpd and restricted to the nations of China, India, Japan, the Republic of Korea, Taiwan, and Turkey.
The P5+1, which consists of the US, Russia, China, the UK, France, and Germany, chose to extend the discussion by another four months after they failed to reach the original deadline of 20 July 2014.
According to a report by Reuters, the shipments have not yet received serious criticism from the US, because officials say the surplus exports are made up of condensate, which is acceptable under the sanction obligations, as well as oil that Iran gave as a gift to Syria.
Furthermore, India’s oil imports from Iran reportedly rose by approximately 26 per cent in July compared to June, reaching 210,300 bpd, in line with tanker arrival data gathered by Reuters.
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