• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 9 mins U.S. Shale Oil Debt: Deep the Denial
  • 13 hours Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 1 day EU to Splash Billions on Battery Factories
  • 9 hours The Dirt on Clean Electric Cars
  • 7 hours Owning stocks long-term low risk?
  • 14 mins Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days The Balkans Are Coming Apart at the Seams Again
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 1 day The end of "King Coal" in the Wales
Can We Expect A Rebound Rally Next Week?

Can We Expect A Rebound Rally Next Week?

Despite recovering somewhat on Friday,…

Are Natural Gas Prices Set To Spike?

Are Natural Gas Prices Set To Spike?

Natural gas inventories have plunged…

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:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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