May 4, 2019 - World

Iran reports steady oil production as U.S. sanctions continue

In this image, a man in a yellow hard hat speaks into a walkie talkie while looking out at two large tankers on the ocean.

The Port of Kharg Island Oil Terminal in the Persian Gulf in 2017. Photo: Fatemeh Bahrami/Anadolu Agency/Getty Images

Iranian Offshore Oil's CEO Hamid Bovard claims that Iran's oil production has not seen any reduction and the country has loaded crude oil for export, Bloomberg reports.

What's happening: U.S. sanctions have driven down Iranian oil exports, which were believed to be roughly 1.3 million barrels per day last month. It is unclear how well Saudi Arabia and OPEC can fill in the gaps as less Iranian oil enters the global market, CNBC reports.

Between the lines: President Trump is trying to tighten oil sanctions against Iran without raising energy prices enough to erode his political standing. The administration is not renewing sanctions waivers beyond early May for countries that still buy Iranian oil. The waiver announcement was a jolt to global crude oil markets as traders weighed the loss of more Iranian barrels.

Go deeper: How Trump’s push to end Iran oil exports could backfire

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