After hard eastern sanctions on the oil sector, Iran surprisingly increased its oil exports. The International Energy Agency (IAE) claims that the country extracted over 3.6 million barrels of oil per day in April 2016; as a result, exports reached 2 million barrels per day in the same month.
After months of restrictions in selling oil, Iran battles to regain the world market and stated that it will not participate in the suspension of oil production, fostered by OPEC.
As part of its strategy, Iran has resumed the trade relations with European buyers, and set new selling deals with great international suppliers. Iran’s attitude regarding oil exports might harm its relations with its neighbor and OPEC’s Leader, Saudi Arabia.
Once the offer of oil in the international market starts to decrease in May, Iran intends to increase even more its production of petroleum. Therefore, Iran might end up jeopardizing OPEP’s indirect strategy in keeping oil prices steady.