• 4 minutes Trump has changed into a World Leader
  • 7 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 8 minutes Indonesia Stands Up to China. Will Japan Help?
  • 10 minutes US Shale: Technology
  • 13 minutes Which emissions are worse?: Cows vs. Keystone Pipeline
  • 17 minutes Shale Oil Fiasco
  • 2 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 18 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 3 hours Phase One trade deal, for China it is all about technology war
  • 11 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 4 hours Might be Time for NG Producers to Find New Career
  • 14 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 18 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 13 hours Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 16 hours Wind Turbine Blades Not Recyclable
  • 16 hours Denmark gets 47% of its electricity from wind in 2019
  • 1 day Beijing Must Face Reality That Taiwan is Independent
Oil Falls Despite Major Outage In Libya

Oil Falls Despite Major Outage In Libya

Oil prices fell on Tuesday…

Iran Resumes Storing Oil In Tankers As U.S. Sanctions Approach

oil tanker

Iran has started to store oil in its own tankers off its coasts ahead of the U.S. sanctions on its oil exports that are expected to cut Tehran’s ability to ship and sell oil to customers around the world.

According to tanker tracking data compiled by Bloomberg, at least five tankers owned by the National Iranian Tanker Company (NITC) have been sitting fully laden with crude oil off the Kharg Island oil terminal in the Persian Gulf over the past two and a half weeks. Another two tankers full of Iranian condensate, the ultra light oil Iran produces from its natural gas fields, have been anchored off Dubai for weeks, according to Bloomberg’s tanker tracking data.

Under the previous round of sanctions on Iran, OPEC’s third-largest producer had used this strategy—keeping oil in floating storage off its coasts—when the U.S. and European sanctions in 2012-2016 cut its ability to export oil.

Analysts expect Iran to increase the oil volumes held in floating storage in the coming weeks and months, as the impact of the sanctions will rise.

The U.S. sanctions snapping back in early November are expected to remove 1 million bpd and possibly more of Iran’s oil exports.

Iran’s key customers in Asia—no.1 China and no.2 India—are not expected to cut off their imports of Iranian oil, although India may reduce some of its Iranian intake as it tries to maneuver between cheap Iranian crude and the U.S. pressure to have Iran’s oil exports down to zero.

Related: China Completes First Physical Delivery For Crude Futures

Major Japanese refiners were said last week to have officially notified Iran that they would halt all imports of Iranian oil for October while they wait for the Japan-U.S. talks on Iranian oil importers to make a permanent decision on how to proceed in November.

U.S. ally South Korea did not import any Iranian oil in August, compared to 194,000 bpd imports from Iran in July, according to tanker-tracking and shipping data compiled by Bloomberg. South Korea says that it continues talks with the U.S. for a possible waiver.

Iran’s September exports are expected to plunge and “average as little as 1.5 million barrels a day in September according to the preliminary loading program, compared to around 2.8 million barrels a day of oil exports in April and May,” Amrita Sen, chief oil analyst at Energy Aspects, said in a note to clients, carried by Bloomberg.

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
Download on the App Store Get it on Google Play