Saturday , June 10 2023

Iran's oil exports are very low by sanctions


Iran's oil exports dropped this month by hundreds of thousands of barrels a day, according to Petro-Logistics, which indicates that US sanctions that began to be applied in Tehran earlier this month have led many buyers away.

The Geneva-based company and oil supply monitoring of OPEC member countries and other major exporters said transport shrank drastically in early November, while customers were waiting for clarification as to whether the US administration will issue any sanctions.

"Iranian crude oil exports fell in November by several hundred thousand barrels a day from October levels," said Daniel Gerber, Chief Executive Officer for Reuters.

"The low volumes we saw earlier this month were due to the reluctance of buyers to schedule transports pending clarification on sanction exemptions."

Petro-Logistics did not provide an exact figure for exports in November, but acknowledged that shipments became more ambiguous as sanctions came into effect this month.

Two producers of export products declined to announce the November figures.

But a drop of several hundred thousand barrels per day reduces Iran's oil exports this month, reaching almost 1 million bpd, according to industry estimates for October exports.

Kepler said Iran exported 1.85 million bpd in October, while another company monitoring Iranian shipments said it exported 1.5 million bpd.

Other estimates for exports this month were lower. According to the data, shipments dropped to around 100,000 barrels per day since early November. According to another source, exports amounted to about 340 thousand barrels per day in the first half of the month.

However, such figures do not take into account all carriers that have ceased the electronic tracking system used in ships, making them "unobserved".

We think volume has increased over the last week, "Gerber said.

Exports could begin to rise after November due to US sanctions exemption eight buyers, allowing them to import at least one oil for 180 days.

Shipments dropped drastically from at least 2.5 million bpd in April, before US President Donald Trump to release the United States from a nuclear agreement between Iran and the world powers in 2015, and to renew sanctions on Tehran.

Iran has promised to continue to export oil despite US efforts to reduce shipments to zero.

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