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While oil producers from Russia to the USA increase production to cash in on triple digit prices, one country is getting screwed: Iran.Iran has had difficulty selling oil and was forced to cut production in recent weeks, sources tell Time.
Iran’s sales are hindered by international sanctions. Meanwhile, the county lacks refining capabilities for some types of oil, and its storage facilities are full.
Looking forward, increased production out of Iraq poses a major threat to Tehran, according to Time:
Already, Iran has lost some of its market share to Iraq, which has better technology and can offer lower prices for similar grades of crude. “Some of Iraq’s customers came to us after it occupied Kuwait and again in 2003 after Saddam Hussein fell with the U.S. invasion,” says an official from Iran’s national oil company, speaking from Tehran on condition of anonymity. “Now, because of Iran’s political situation and difficulties with sanctions, those customers are going back to Iraq.”