• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 5 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 1 min Socialists want to exorcise the O&G demon by 2030
  • 23 hours Is Natural Gas Renewable? I say yes it is.
  • 8 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 6 hours Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 1 day Making Fun of EV Owners: ICE-ing Trend?
  • 1 day Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 15 hours Cheermongering about O&G in 2019
  • 14 hours North Sea Rocks Could Store Months Of Renewable Energy
  • 23 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 7 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 4 hours Oceans "Under Fire" Of Plastic Trash
  • 1 day Orphan Wells

Breaking News:

Oil, Gas Industry Fears Skills Shortage

Oil Markets Could See Deficit In 2019

Oil Markets Could See Deficit In 2019

The OPEC+ cuts and slowing…

A Logical Move From An Inconsistent Tesla

A Logical Move From An Inconsistent Tesla

It seems that Musk and…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

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