• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Could Venezuela become a net oil importer?
  • 1 hour Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 8 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 14 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 4 hours Gazprom Exports to EU Hit Record
  • 8 hours Why is permian oil "locked in" when refineries abound?
  • 6 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 4 hours Oil Buyers Club
  • 4 hours Could oil demand collapse rapidly? Yup, sure could.
  • 7 hours Oil prices going down
  • 2 hours Saudi Arabia turns to solar
  • 1 day Teapots Cut U.S. Oil Shipments
  • 22 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 8 hours EVs Could Help Coal Demand
  • 14 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
Azerbaijan’s Pipeline Conundrum

Azerbaijan’s Pipeline Conundrum

Azerbaijan’s European pipeline project is…

OPEC+ Proposes 1-Million-Bpd Production Increase

OPEC+ Proposes 1-Million-Bpd Production Increase

The joint ministerial monitoring committee…

An Unlikely Buyer Of Iranian Oil Emerges After U.S. Withdrew From The Deal

Enap oil

Iranian crude oil has landed an unlikely buyer in the South American country of Chile that occasionally buys Middle Eastern crude, shipping and trading sources told Platts on Thursday, two days after the U.S. withdrew from the Iran deal and said it was re-imposing sanctions on Iran, including on its energy sector and crude oil sales.

According to Platts’ sources, Chile’s state-held refiner ENAP has bought 140,000 metric tons of Iranian crude oil for May loading.

It’s a rare move for Chile, and this would be the first time in nearly 18 months that the country will have imported Iranian crude oil, according to data from S&P Global Platts trade flow software cFlow.

Iran is not the typical supplier of crude to Chile, and neither is the Middle East. Chile mostly imports oil from South American producers Brazil, Argentina, Ecuador, and Peru, although it occasionally buys oil from Middle Eastern producers such as Saudi Arabia, Iraq, and Kuwait.

While Chile is reportedly buying a rare Iranian oil cargo, the U.S. will be targeting Iran’s crude oil sales, and sanctions lifted under the deal will be re-imposed following a 180-day wind-down period, the U.S. Treasury said.

China, one of Iran’s key oil customers, assured Tehran that it would honor the nuclear deal from which the U.S. pulled out, and would continue to buy Iranian oil.

Related: Oil Markets Tremble On Iran, Israel Flare-Up

European buyers, however, are threading the needle carefully and are still assessing the potential impact of the U.S. sanctions on Iranian oil. Europe buys around one-third of Iran’s crude oil exports—700,000 bpd. Buyers are wary that the re-imposed U.S. sanctions, expected to kick in in early November, could affect their business and transactions with U.S. banks and in U.S. dollars.

Currently, demand for Iranian oil for June is robust, traders told Platts.

“I think Europe will keep buying Iranian barrels till the banking system will stop them,” a source at a trading house active in the European crude market told Platts. Iran’s oil continues to be very economical compared with other sour crudes in the region, the source added.

Yet, European interest in Saudi and Iraqi medium sour crudes has recently increased, also because they have started to cut their selling prices to lure more customers.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News