Iran’s oil exports have fallen by an estimated 40% since the start of the year, according to the International Energy Agency (IEA).
This comes as the country’s major suppliers have cut trade under pressure from the US Government.
In its monthly report, the IEA said there has been a reduction in Iran’s exports from 2.5 million barrels per day at the end of 2011 to 1.5 million last month. However, the country is still producing 3.3 million barrels per day and is stockpiling oil that has not been sold.
The Agency suggested: “In months ahead, Iran may need to shut in production volumes if export markets remain similarly constrained and storage fills up.”
However, Iran’s capital denied it has problems in oil sales despite its major customers – China, India and Japan – turning down offers of cheap crude oil under pressure from Washington to cut trade ties.
This comes as the US Government has been trying to stop Iran’s oil revenue and nuclear development as it claims the country is making weapons. However, Iran denied the claims saying the nuclear programme is for civilian purposes.
The EU is also set to cut trade on Iran’s oil from next month.