Iran to Boost Oil Production by 500,000 Barrels Daily

MOSCOW (Sputnik) — Iran is increasing its daily oil production by 500,000 barrels after the sanctions against Tehran are removed officially, the managing director of the National Iranian Oil Company said Monday.

"We are currently monitoring the problems and obstacles our banks are facing with, since it will take a few weeks to be solved and once there would be no other major problem, Iran would definitely be ready to boost production and export," Roknoddin Javadi said, as quoted by the company.

According to Javadi, the increase in production capacity is among the company’s top priorities.

"Today, there is a great opportunity to accelerate the pace of development and it certainly affects the oil industry in an extensive way," the official said.

The European Union, the United States and the United Nations lifted their sanctions against the Islamic Republic after the International Atomic Energy Agency verified late on Saturday Tehran’s compliance with a nuclear agreement reached last July. The lifting of sanctions allows Iranian oil producers to re-enter the market.

The announcement comes amid oversupply in the global oil market, with the Organization of the Petroleum Exporting Countries refusing to cut down its daily output.

According to OPEC, Iran currently exports just over 1 million barrels of oil per day, producing over 3 million barrels daily.