The Iran’s parliament reduced the government’s oil export target to 1.5 million barrels per day (mmbl/d) from 2.3 mmbl/d to manage expectations, S&P Global Platts reported quoting Iran’s News Agency (ISNA).

This came due to the strict US sanctions and COVID- 19 impact on the demand which oushed Iran’s oil sales below 1 mmbl/d during 2020. The proposed budget aimed to sell about 2 mmbl/d in domestic and international markets.

“The 2.3 million-barrel sales ceiling was unrealistic and non-realizable… In the most optimistic case, members of the commission reached the conclusion that the government [can] achieve exports of 1.5 million barrels…,” Malek Shariati-Niasar, the Head of the energy team in the Corporate Committee, was quoted as saying.

“The commission concluded that the government can practically count on the money of only 1 million barrels of oil. But the Commission has given the government authority to sell up to 1.5 million b/d,” Shariati-Niasa=r said.

Additionally, he added that the price base for the government calculations was unchanged at $40/b.