• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 5 hours Canada Election Deadlock?
  • 39 mins Is Eating Meat Worse Than Burning Oil?
  • 9 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 18 hours Here's your favourite girl, Tom!
  • 9 hours Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 2 hours China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 23 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 17 hours IMO 2020:
  • 8 hours Nigeria Demands $62B from Oil Majors
  • 7 hours Devaluing the Yuan
  • 1 day China's Blueprint For Global Power
  • 1 day Deepwater GOM Project Claims Industry First
  • 7 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Record Exports For A Forgotten Petroleum Power

It's amazing how fast we forget things.

And one important country has been particularly absent from the minds of petroleum observers the last few years. A nation that has considerable power over global export markets, but is today largely disregarded in the industry.

That's Iran. A global-scale oil and gas producer--whose exports had temporarily disappeared from the worldwide market due to economic sanctions.

But we got an important reminder last week that Iran is still a critical supplier. And one that is once again on the rise.

Those numbers came from commodities specialists Platts. Who reported that Iran's exports of natural gas liquids hit a high-point during May.

Estimates are that Iran shipped 317,000 tonnes of liquefied petroleum gas to Asia during the month.

Here's why those numbers are important. This is the highest export volume seen since sanctions against Iran were lifted in May 2013. Suggesting that global buyers are ramping up purchases here.

That represents a major, and largely forgotten, source of supply returning to the market. Iran had been sanctioned since July 2012. Meaning that the country's petroleum exports had dwindled over the last two years. For some commodities, shipments had dropped to almost nothing.

But the new data show us that Iran is back--and as important as ever. Buyers from key markets like China, South Korea and Southeast Asia have all been reportedly stepping up their buying here now that shipping restrictions have been lifted.

This is critical to keep in mind for energy investors. Up until now, the market has been functioning largely without Iranian supply of oil, natural gas and liquids. The return of this significant producer could thus change the global supply-demand balance.

Effects could be significant, given the potential scale of Iran's output. If you're an energy investor, this is a critical spot to keep an eye on.

Here's to an awakening giant,

By Dave Forest




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play