Consistent with analysts suggestions that the US is reluctant to tighten sanctions on Iran because of concerns about oil markets, note that Iranian crude oil production began ramping up in early 2023 (see chart below) shortly after the massive Strategic Petroleum Reserve withdrawals had ceased. The increase in Iranian production in 2023 of ~500,000 bopd is comparable to the SPR withdrawal rate for 2022 (averaged 608,000 bopd).
Given that further depletion of the SPR was no longer politically acceptable, a cynic might suggest that oil market considerations associated with the end of SPR withdrawals and OPEC tightening (Iran is currently exempt from OPEC quotas) factored into decisions regarding the relaxation of sanctions on Iran.
The US is also prepared to ease sanctions on Venezuelan oil production. Why is production from Iran and Venezuela preferable to US offshore production? Why is the US sanctioning itself by enacting a controversial and punitive 5 year offshore leasing plan?
Bud's Offshore Energy (BOE) 
Leave a comment