Minister nixes Iran’s slumping oil sales claims, cites countermeasures
Iranian Oil Minister Mohsen Paknejad dismissed on Wednesday western reports of declining oil sales by the country, stressing, "This claim is unfounded."
Speaking to reporters on Wednesday in response to a question about whether sanctions would affect Iran's oil sales, Paknejad said, "Naturally, sanctions have been imposed to restrict oil sales, but we've devised specific strategies to counter them accordingly. This is why these sanctions haven't significantly impacted Iran's crude oil sales in recent years.”
The minister did not disclose specific quantitative metrics and fiscal valuation details of crude oil exports.
The fuel sector has been a main target of foreign sanctions on Iran’s oil industry. The country has steadily increased its refining capacity in recent years to prevent the sanctions from affecting its transportation and electricity generation sectors.
Bloomberg claimed in a report on June 4 that Iran’s crude oil shipments to China fell sharply in May as tighter US sanctions and seasonal refinery maintenance weighed on flows, citing preliminary ship-tracking data and market analysts.
As data from Vortexa Ltd. purported, Iran exported just over 1.1 million barrels per day (bpd) of crude and condensate to China last month, marking a drop of roughly 20% compared to the same period a year earlier.
In response to a question about differences in the approach of Donald Trump's second presidential term compared to his first one, Paknejad stated, "Both in the period prior to this and now, slogans about restricting Iran's oil sales have always been raised. However, we believe we can overcome these restrictions. Experience has also shown that these pressures have not had a decisive impact on the continuation of Iran's oil exports."
He also said that the Oil Ministry will spare no effort to convert crude oil into higher value-added products in refineries.
"In the construction of refineries, petro-refineries, and mini-refineries, or assisting in their establishment, the ministry utilizes all available legal capacities. Undoubtedly, if we can convert crude oil into higher value-added products in refineries, we will have more favorable conditions for exports."
Regarding whether Iran still views oil as a revenue source or has moved towards development, he noted, "We regard oil as a national asset, but at the same time, we are striving to properly define the concept of 'resource preservation'."
"Some believe resource preservation means leaving oil underground for future generations. However, the reality is that according to international estimates, the world may gradually move towards reducing the role of fossil fuels in energy supply," the oil minister added.
He continued, "Of course, this view also has opponents, and many believe that as long as fossil fuels exist, they will continue to play the primary role in energy supply. Therefore, the more we can extract crude oil under favorable economic conditions, observing efficiency and economic scales, and convert it into productive assets above ground, the more we will have invested in the country's future."