WANA (Jan 24) – Since Iran is one of the world’s decisive energy players, the oil market is sensitive to the smallest issues regarding the Iranian oil industry.

 

Oil prices closed on Friday at their highest level in over a week. Brent crude rose by $1.82 to sell at $65.88; this is the highest price since January 14. U.S. crude oil traded at $61.07 with an increase of $1.71, marking the highest level in more than a week. Both oil benchmarks recorded a total weekly growth of over 2.5 percent.

Iran Sanctions Drive Global Oil Prices Higher

Iran Sanctions Drive Global Oil Prices Higher. Social media/ WANA News Agency

U.S. Sanctions Package Against Iran’s Oil Sector

On Friday, the United States announced new sanctions against vessels carrying Iranian oil, causing concerns about oil supply disruptions in West Asia. The U.S. Treasury Department announced on Friday that the country has sanctioned 9 vessels and 8 companies related to the transport of Iranian oil and petroleum products.

 

This comes as, according to OPEC statistics, Iran is the fourth-largest crude oil producer in OPEC after Saudi Arabia, Iraq, and the UAE, with a production of about 3.2 million barrels per day.

Iran Sanctions Drive Global Oil Prices Higher. Social media/ WANA News Agency

Iran Sanctions Drive Global Oil Prices Higher. Social media/ WANA News Agency

Iran’s Record-Breaking Oil Production Despite 520 Sanction Packages

Despite the sanctions, Iran remains one of the main oil exporters to China and the top exporter of seaborne oil to the country. At the same time, the “Statistical Review of World Energy” report by the Energy Institute (UK) stated that the country’s oil and condensate production reached 5.1 million barrels, breaking its 46-year post-revolution record.

 

Kazakhstan’s Oil Production Problem

Meanwhile, Kazakhstan is facing difficulties resuming production from one of the world’s largest oil fields. Chevron announced that oil production at Kazakhstan’s Tengiz oil field has not yet resumed; this follows the operator, Tengizchevroil, announcing the field’s closure on Monday after a fire occurred.

 

This incident has intensified the problems of Kazakhstan’s oil industry, which was already under pressure due to bottlenecks in its main export route in the Black Sea, damaged by Ukrainian drones.