MACRO WATCH Global: Iran, the second-largest crude oil producer following Saudi Arabia in OPEC, could lose this position if its oil production continues to drop. Iran’s crude oil production fell by 16% in April 2012 from April 2011, as production levels have declined from 3.7 million barrels a day to about 3 million since January 2011. This was exacerbated by the European Union-led oil embargo against Iran proposed in 2012. Production is expected to drop even moreas the embargo comes into full force in July 2012, further restricting Iran’s access to foreign oil markets.
Declining Iranian Crude Oil Production
Chart provided by: CEIC
With oil and gas exports accounting for approximately 14% of Iran’s exports, these sanctions will adversely impact Iran’s economy though it may result in economic repercussions, such as higher world oil prices.
By Sandra Iskander in Egypt – CEIC Analyst