• 4 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 minutes China Faces Economic Collapse
  • 13 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 15 minutes Iran in the world market
  • 18 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 1 min USA Wants Iran War -- Shooty Shooty More
  • 1 hour Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 7 hours USA : Attack came from 'Iranian soil'. Pompeo to release 'evidence'.
  • 13 hours Never Bring A Rapier To A Gun Fight
  • 30 mins Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 9 mins Experts review drone damage . Say Saudis need to do a lot of explaining.
  • 16 hours Bahrain - U.S.: Signed Deal To Buy Patriot Missiles
  • 18 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 16 hours Trump Will Win In 2020 And Beyond..?
  • 18 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 16 hours Democrats and Gun Views
  • 13 hours Aramco Production
A Fracking Ban Will Never Happen

A Fracking Ban Will Never Happen

Democratic candidates are ramping up…

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