Is Iran’s oil storage nearly full – and will it have to cut production?
Summary
The US has imposed a naval blockade on Iranian ports and the Strait of Hormuz since April 13, limiting Iran's ability to export oil. Analysts warn that Iran could run out of space to store its crude oil within a few weeks if the blockade continues, which may force Iran to reduce oil production.Key Facts
- The US naval blockade targets Iranian ports and the Strait of Hormuz, a key shipping route for 20% of the world’s oil and gas.
- Iran exports most of its crude oil through Kharg Island, which is nearing full storage capacity due to the blockade.
- Data from Kpler suggests Iran’s crude oil storage could fill up in 12 to 22 days if the blockade continues.
- Iran’s oil exports were about 1.7 to 1.8 million barrels per day in recent months.
- The Strait of Hormuz lies between Iran and Oman and is vital for global energy supplies.
- Iran has at times threatened to close the strait and restrict shipping in response to US actions.
- US Treasury Secretary Scott Bessent said that once storage fills, Iran may have to shut down oil wells.
- Iran’s oil production capacity is about 2.6 million barrels per day, but the blockade limits the ability to export this oil.
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