Some energy analysts have speculated that Iran is holding out for a better market price to sell its oil. But with oil prices already hitting record highs, this explanation does not add up.

Another explanation is that the current policy is a result of the NIOC’s inferior management skills — which is certainly possible, given Iran’s poor track record in managing its investment-deprived energy sector. The intent behind such a policy would be for Iran to manipulate global crude prices by reducing exports and driving up demand.

Iranian President Mahmoud Ahmadinejad already threw around threats in recent days to cut Iranian oil output, sending jitters through the energy market that ended up pushing oil prices to $127 per barrel. From the standpoint of the Iranian Energy Ministry, the threats to reduce output combined with a reduction in exports could drive up prices further and allow the Iranians to get a better deal on their crude sales.