Iran is facing a new problem in the ongoing Middle East conflict. It is not just struggling toexport oil- it is also running out of places to store it. As the crisis drags on and exports remain disrupted, Tehran's storage facilities are rapidly filling up. This could soon force the country to cut oil production sharply.
According to energy research firm Kpler, cited by Bloomberg, Iran may have only 12 to 22 days of unused storage capacity left.
If storage tanks fill up completely, Iran could be forced to reduce crude production by as much as 1.5 million barrels per day by mid-May.
Also Read:Iran Can’t Export, So It’s Stashing Crude at Sea
This comes at a time when Iranian oil production is already under pressure. Last week, Goldman Sachs estimated that Iran has already withheld up to 2.5 million barrels per day of output, the news outlet reported.
Other major Gulf producers, including Saudi Arabia, Iraq, Kuwait and the United Arab Emirates, have also cut supplies.
Although the situation is serious, the financial impact may not be immediate.
Iran's oil exports have fallen sharply since early April, when US President Donald Trump ordered a naval blockade of Iranian ports.
According to Kpler, Iran's oil shipments have dropped to around 567,000 barrels per day, compared with an average of 1.85 million barrels per day in March.
However, the hit to revenues will likely take time to show up.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
