Crude production from sanctions-hit Iran will fall by about 1 million b/d in 2012 to 2.6 million b/d by the end of the year, the administrator of the US Energy Information Administration said Tuesday.
Output from Iran will then fall by an additional 200,000 b/d in 2013, EIA chief Adam Sieminski said.
"A number of foreign companies that were investing in Iran's oil sector have halted their activities as a result of previous US sanctions, which have been compounded by tighter measures enforced since the start of this year that have made it increasingly difficult to do business with the country," Sieminski said in comments accompanying EIA's August Short-Term Energy Outlook. "The forecast decline in Iran's output will be offset by increased production from other OPEC member countries."
Iran has been hit by sanctions from the West over its nuclear program, including an EU ban implemented July 1 that prohibits the import of Iranian crude into Europe.
